(MENAFN) Eleven banks have provided USD30 billion in deposits to save First Republic Bank, according to a joint statement by US agencies on Thursday. The statement was issued by Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell, Federal Deposit Insurance Corporation Chairman Martin Gruenberg, and Acting Comptroller of the Currency Michael Hsu. The banks' show of support is a welcome demonstration of the resilience of the banking system, they said.
Four of the largest US banks, Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo, announced in a separate statement that they are each making a USD5 billion uninsured deposit into First Republic Bank. In addition, Goldman Sachs and Morgan Stanley are each making an uninsured deposit of USD2.5 billion, while BNY Mellon, PNC Bank, State Street, Truist, and U.S. Bank are each making an uninsured deposit of USD1 billion, according to the joint statement.
The show of support by these large banks is significant, as it demonstrates their confidence in the country's banking system. The banking system has strong credit, plenty of liquidity, strong capital, and strong profitability, and recent events have done nothing to change this. The actions of America's largest banks reflect their confidence in the banking system, and they are deploying their financial strength and liquidity into the larger system, where it is needed the most.
The move to provide deposits to save First Republic Bank comes amid ongoing concerns about the health of the US banking sector. The collapse of two major US banks has intensified these concerns and raised questions about the stability of the banking system. The show of support by these 11 banks is a positive sign, as it demonstrates their commitment to maintaining the stability of the banking system and their willingness to work together to address any challenges that may arise.
The joint statement by US agencies highlights the resilience of the banking system and the importance of collaboration among banks to address challenges and maintain stability. The show of support by these 11 banks is a testament to the strength of the US banking system and the confidence of its participants. The move is a positive development for the banking sector and the broader economy, as it helps to mitigate risks and maintain stability in the face of ongoing challenges.
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