US banks rally to support First Republic Bank amid crisis
A group of US banking giants joined forces on Thursday to support First Republic Bank amid growing worldwide concern about the resilience of the banking system and the possibility of a financial crisis.
Private US banks including JPMorgan Chase & Co, Citigroup Inc, Bank of America Corp, Wells Fargo & Co, Goldman Sachs and Morgan Stanley were involved in the rescue.
Banks pumped in $30 billion (about €28.2 billion) to support First Republic Bank as the lender struggled with high interest rates imposed last year to avoid a recession amid high inflation. Shares in the regional bank have dropped 70% in the past nine trading sessions.
US regulators hailed the move as proof of the banking system’s resilience.
Source: DW
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