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JPMorgan, Citigroup, Others to Rescue First Republic Bank Distress

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To prevent First Republic Bank from failing, a syndicate of US institutions is getting ready to loan it $30 billion.

First Republic, which has been at the center of the problem consuming a sector of the banking industry, would receive a substantial infusion of deposits from other lenders, it was reported on Thursday, in order to prevent a collapse.

The bank’s treasury department issued a statement saying, “This show of support by a group of significant banks is highly welcome and underscores the durability of the banking sector.

The financially ailing San Francisco institution will get the $30 billion in order to pay out customer withdrawals and increase confidence in the US banking sector.

The midsize lender on Thursday agreed to take $30 billion in deposits from 11 banks in an effort to calm investors’ worries and bolster the banking industry.

Among the big banks that are releasing money to First Republic Bank are JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, and Truist.

First Republic has lost more than 70% of its market value since the failure of Silicon Valley Bank, despite efforts over the weekend to stabilize its finances with $70 billion in emergency loans and other liquidity from the Federal Reserve and JPMorgan Chase.

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