Minneapolis-based U.S. Bank is providing $1 billion in uninsured deposits to help support the beleaguered California-based First Republic Bank.
U.S. Bank provides $1 billion of $30 billion rescue package for First Republic Bank
The Minneapolis-based bank is one of 11 that are part of the plan aimed at helping stabilize the banking sector
March 16, 2023 at 9:46PM
It's part of a $30 billion rescue package 11 of the country's biggest banks put together in an effort to keep First Republic from becoming the third bank to fail in less than a week and to help stabilize the banking sector.
In a statement, U.S. Bank said it's providing these funds to support the bank and the broader banking system.
"Today's action underscores our desire to play a supportive, constructive role in helping find solutions to the immediate challenges," the company said in a statement. "Additionally, the effort by the federal government to bring together the banking sector, including U.S. Bank, speaks to the strength of the overall financial system."
JPMorgan Chase, Bank of America, Citigroup and Wells Fargo have pledged to each put $5 billion into First Republic, while Morgan Stanley and Goldman Sachs will deposit $2.5 billion. Five other banks, including U.S. Bank, are contributing $1 billion each.
Shares of First Republic had fallen sharply this week, dropping 60% on Monday alone. It serves a similar clientele as Silicon Valley Bank, which collapsed on Friday leading to federal regulators was seizing it after customers began frantically withdrawing their deposits.
First Republic appeared to be facing a similar crisis.
The Associated Press contributed to this report.
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