$FRC First Republic Set to Get $30 Billion of Deposits in Rescue + How Yellen & Dimon Helped Secure The Funding

First Republic Set to Get $30 Billion of Deposits in Rescue

The nation’s biggest banks are close to agreeing upon a plan to deposit about $30 billion with First Republic Bank in an effort orchestrated by the US 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.

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Jamie Dimon and Janet Yellen were on a call Tuesday, when she floated an idea: What if the nation’s largest lenders deposited billions of dollars into First Republic Bank, the latest firm getting nudged toward the brink by a depositor panic.

Dimon was game — and soon the chief executive officer of JPMorgan Chase & Co. was reaching out to the heads of the next three largest US lenders: Bank of America Corp., Citigroup Inc. and Wells Fargo & Co.

All month, the nation’s banking giants have been raking in deposits from nervous customers at smaller firms — and now those behemoths would be taking some of their own money and handing it to a San Francisco bank in distress, trying to stanch a widening crisis.


Over two days of frantic phone calls, meetings and some arm-twisting, the CEOs of 11 banks agreed to chip in a total of $30 billion for First Republic, promising to park the money there at least 120 days.

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