Eleven Big Banks Rescue First Republic Bank with Deposits Totaling $30 Billion

The largest banks in the U.S. have reached out to First Republic Bank with a flood of cash totaling $30 billion, in an effort to stem the spreading panic following the recent collapse of Silicon Valley Bank (SVB)​ and Signature Bank.

The eleven U.S. banks said in a joint statement issued Thursday: "Bank of America, Citigroup, JPMorgan Chase and Wells Fargo announced today they are each making a $5 billion uninsured deposit into First Republic Bank. Goldman Sachs and Morgan Stanley are each making an uninsured deposit of $2.5 billion, and BNY Mellon, PNC Bank, State Street, Truist and U.S. Bank are each making an uninsured deposit of $1 billion, for a total deposit from the eleven banks of $30 billion."

"This action by America's largest banks reflects their confidence in First Republic and in banks of all sizes, and it demonstrates their overall commitment to helping banks serve their customers and communities. Regional, midsize and small banks are critical to the health and functioning of our financial system," added the statement.

​First Republic's shares were last up nearly 6% at $32.92 in volatile trading on Thursday. The stock tumbled 36% earlier in the day before reports of the rescue plan sent them up as much as 40%.

The shares have lost two-thirds of their value in the past seven days and are down more than 65% month-to-date.

The jitters have spread around the world. Credit Suisse​, beset by a series of missteps and customer departures, was forced to secure a $50 billion-plus lifeline Wednesday (March 15) from its own central bank after the Swiss firm's share price fell to record lows.