US Banks Rally Together to Provide $30 Billion Deposit to Strengthen First Republic Bank and Reassure Investors

Amidst increasing economic uncertainty, eleven of the largest US banks have come together to provide a $30 billion deposit to First Republic Bank in an effort to stabilize the lender and restore confidence in the US banking system.[0] JPMorgan Chase (JPM), Bank of America (BAC), Citigroup (C), and Wells Fargo (WFC) each deposited $5 billion, Goldman Sachs (GS) and Morgan Stanley (MS) each deposited $2.5 billion, and BNY Mellon (BK), PNC Bank (PNC), State Street (STT), Truist (TFC) and U.S. Bank (USB) each deposited $1 billion.[1]

The move comes after First Republic's stock was pummeled in recent days, following the collapse of Silicon Valley Bank (SVB) last Friday, and ratings downgrades by Fitch Ratings and S&P Global Ratings after customers began to yank their money out of the bank.[2]

The collective effort by the banks is a show of support and resilience, with the banks noting in a joint statement that they are “deploying our financial strength and liquidity into the larger system, where it is needed the most.”[3]

First Republic Founder and Executive Chairman Jim Herbert and CEO and President Mike Roffler expressed their appreciation for the support, saying that it “strengthens our liquidity position” and is “a vote of confidence for First Republic and the entire US banking system.”[0]

The banking giants are also hoping to reassure investors who are still wary of market volatility. Stephen Innes, managing partner at SPI Asset Management, noted that “traders do not want to get overexcited, especially with investors still focusing on what can go wrong instead of what could go right.”[4]

The move by the large US banks comes as US Treasury Secretary Janet Yellen attempted to alleviate concerns regarding the viability of the US banking system before the Senate Finance Committee.[5]

The news has been welcomed by Asian markets, with Tokyo’s Nikkei 225 (^N225) rising 1.20% to finish at 27,333 points, while the Hang Seng (^HSI) in Hong Kong gained 1.90% to 19,567.[6]

However, investors remain cautious, as there are still elements of headline risk, especially over the weekend, that could upset the markets on Monday morning.[4]

0. “Big banks create $30 billion rescue package for First Republic” The Boston Globe, 16 Mar. 2023,

1. “Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, Goldman Sachs, Morgan Stanley, BNY Mellon, PNC Bank …” Business Wire, 16 Mar. 2023,

2. “Wall Street rides to the rescue as 11 banks pledge First Republic $30 billion in deposits” CNBC, 16 Mar. 2023,

3. “First Republic Gets $30 Billion Lifeline from JPMorgan, Citi, Bank of America, Wells Fargo” Investopedia, 16 Mar. 2023,

4. “Credit Suisse shares continue to slide; US banks join forces to rescue First Republic – business live” The Guardian, 17 Mar. 2023,

5. “Large U.S. banks come to rescue of First Republic” CBS News, 17 Mar. 2023,

6. “FTSE 100: Stocks rise US banks deposit $30bn to rescue First Republic” Yahoo News, 17 Mar. 2023,

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