US banking giants pledge $30bn to prop up First Republic Bank

Aljazeera reported that the largest banks in the United States have moved to shore up First Republic Bank in an effort to ease fears that the regional lender could be the next domino to fall after the second-largest banking collapse in US history.

A group of 11 private US banks, including Bank of America, Citigroup and JPMorgan Chase, announced on Thursday that they would deposit $30bn into the crippled California-based First Republic.

Bank of America, Citigroup, JPMorgan Chase and Wells Fargo said they would each make a $5bn uninsured deposit, while Goldman Sachs and Morgan Stanley are each making an uninsured deposit of $2.5bn.

BNY-Mellon, PNC Bank, State Street, Truist and US Bank also are each making an uninsured deposit of $1bn. “Together, we are deploying our financial strength and liquidity into the larger system, where it is needed the most,”the banks said.

Shares of First Republic pared earlier losses to trade higher on Wall Street on Thursday, following reports it could receive the infusion of funds from some of the country’s most prominent financial institutions.

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