The nation's biggest banks are close to agreeing upon a plan to deposit as much as about $30 billion with First Republic Bank in an effort orchestrated by the U.S. government to stabilize the battered California lender, according to people with knowledge of the matter.
Banks including JPMorgan Chase & Co., Citigroup Inc., Bank of America Corp., Wells Fargo & Co., Morgan Stanley, U.S. Bancorp, Truist Financial Corp. and PNC Financial Services Group Inc. are part of the discussions, said the people, asking not to be identified because the talks are private.
The biggest banks, including JPMorgan, Bank of America and Citigroup, would contribute $5 billion of deposits each, with smaller banks kicking in smaller amounts, the people said.
Details of the rescue, which are still being worked out, may be announced as soon as Thursday afternoon, the people said. Drafts of an announcement are being shared at banks and across federal agencies, the people said.
| Banks | Contribution Per Bank |
|---|---|
| JPMorgan, BofA, Citi, Wells Fargo | $5 billion |
| Goldman Sachs, Morgan Stanley | $2.5 billion |
| PNC, BNY Mellon, Truist, U.S. Bancorp, State Street | $1 billion |
Representatives of the banks, the Federal Reserve, the Federal Deposit Insurance Corp. and the Treasury Department either declined to comment or didn't immediately respond to requests for comment. A spokesman for San Francisco-based First Republic declined to comment.
First Republic's share price swung wildly Thursday, plunging as much as 36% early in the day, then surging as much as 28% midday. They closed up about 9.5%, following multiple trading pauses for volatility.
