▲ First Republic Bank of America
Big U.S. banks have stepped in to bail out the crisis-ridden First Republic.
The Wall Street Journal reported yesterday (16th) local time, citing sources, that large US banks are discussing a plan to jointly bail out First Republic Bank with a total of $250 billion and more than 32.8 trillion won of our own money.
The source said JPMorgan, Citigroup, Bank of America (BOA) and Wells Fargo are in talks to invest $50 billion each and about $6.5 trillion in our own money.
Local banks such as US Bancorp, PNC Financial Services Group and Truist Financial are also reportedly participating.
The specifics have not yet been decided and the banks have also discussed the plan with regulators, the sources explained.
He added that the details of the negotiations could be made public as early as this day.
In the wake of the Silicon Valley Bank (SVB) bankruptcy and the First Republic Bank crisis, anxious depositors reportedly withdrew deposits they had deposited in these small and medium-sized banks and deposited them in large banks.
Some sources said that the First Republic Bank support from these large banks could also be structured by returning some of the deposits coming in from the bank's depositors.
First Republic Bank dispelled fears of a large-scale withdrawal situation on Jan. 12 by revealing that it had received funds from JPMorgan and others along with swift action by the US authorities.
However, stock prices, which seemed to rebound, have plunged day after day, and the crisis theory is growing again.
(Photo = Getty Images Korea)