Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, Goldman Sachs, Morgan Stanley, BNY Mellon, PNC Bank, State Street, Truist and U.S. Bank to Make Uninsured Deposits Totaling $30 Billion Into First Republic Bank

Rhea-AI Summary

JPMorgan Chase is part of a collective action by the largest U.S. banks, including Bank of America and Citigroup, to support First Republic Bank with a total of $30 billion in uninsured deposits. JPM contributed $5 billion, alongside others like Goldman Sachs and Morgan Stanley, which deposited $2.5 billion each. This initiative underscores confidence in the U.S. banking system, particularly in light of recent challenges faced by some banks. The effort aims to maintain liquidity within the financial system, supporting the critical roles of regional and midsize institutions.

Positive

• Demonstrates confidence in the U.S. banking system.
• $30 billion in total uninsured deposits enhances liquidity for First Republic Bank.
• Collective support from major banks fosters stability in financial markets.

Negative

• None.

ISSUED ON BEHALF OF

Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, Goldman Sachs, Morgan Stanley, BNY Mellon, PNC Bank, State Street, Truist Bank, US Bank

Action by the largest U.S. banks reflects their confidence in the country’s banking system and helps ensure First Republic has the liquidity to continue serving its customers.

NEW YORK--(BUSINESS WIRE)-- 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.

Following the receiverships of Silicon Valley Bank and Signature Bank, there were outflows of uninsured deposits at a small number of banks. America’s financial system is among the best in the world, and America’s banks – large, midsize and community banks – do an extraordinary job serving the banking needs of their unique customers and communities. The banking system has strong credit, plenty of liquidity, strong capital and strong profitability. Recent events did nothing to change this.

The actions of America’s largest banks reflect their confidence in the country’s banking system. Together, we are deploying our financial strength and liquidity into the larger system, where it is needed the most. Smaller- and medium-sized banks support their local customers and businesses, create millions of jobs and help uplift communities. America’s larger banks stand united with all banks to support our economy and all of those around us.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230316005695/en/

Jessica Oppenheim

Bank of America

646-855-1600

Jennifer Lowney

Citigroup

212-793-3141

Joseph Evangelisti

JPMorgan Chase

212-270-7438

Amy Bonitatibus

Wells Fargo

212-214-3020

Source: JPMorgan Chase & Co.

FAQ

What banks are participating in the $30 billion deposit into First Republic Bank?

Participating banks include JPMorgan Chase, Bank of America, Citigroup, Goldman Sachs, and others.

How much is JPMorgan Chase contributing to First Republic Bank?

JPMorgan Chase is contributing $5 billion.

Why are U.S. banks supporting First Republic Bank?

The support reflects confidence in the U.S. banking system and aims to ensure liquidity for First Republic.

What does the $30 billion deposit signify for the banking sector?

It signifies a strong commitment from major banks to bolster the financial system amidst recent challenges.

What impact does this action have on JPMorgan Chase's stock?

This action may strengthen investor confidence in JPMorgan Chase amidst wider banking sector support.