A nationwide community of banks, big and small, band together to invest in and assist First Republic Bank
Last week the nation witnessed the collapse of two popular banks just days apart from one another; Silicon Valley Bank failed on Friday and Signature Bank followed just two days afterward.
The failure of the two banks placed a scare on the American people while President Biden assured Americans that the banking system is still safe, “Americans can rest assured that our banking system is safe. Your deposits are safe.”
Now in recent days comes the fear of a third bank possibly failing, First Republic Bank. National and regional banks, big and small, have come together to help the First Republic Bank and maintain the confidence of investors and the American people. Banks such as Chase, Bank of America, Wells Fargo, and Citigroup will deposit $5B into deposit accounts of First Republic. A number of smaller banks such as Goldman Sachs, Morgan Stanley, Truist, PNC, and more will deposit at least $1B each into deposit accounts of First Republic Bank.
All of the banks have agreed to at least hold the deposits in their designated accounts for at least 120 days.
