First Republic Bank Rescued by Wall Street Banks


Kristine: And now to some breaking news, a group of Wall Street banks is planning a rescue package of $30 billion for First Republic Bank.

Maurice: CBS 2’s Dick Brennan here now with more on this. Dick…

First Republic Bank

Dick: Maurice and Christine, First Republic Bank had its credit rating downgraded over fears depositors would pull their cash. Worries have grown that the mid-size bank might be the next to fail after the collapse of Silicon Valley Bank and Signature Bank. Now, 11 banks including JPMorgan Chase, Citigroup, Wells Fargo, and Goldman Sachs are part of the group pooling together the package. It consists of $30 billion in deposits in capital. First Republic Bank’s stock had faltered but it was up 10% today after reports of the rescue. The collapse last week of SVB Bank was the second-biggest bank failure in U.S. history after Washington Mutual in 2008. Today, Treasury Secretary Janet Yellen tried to calm people worried about their bank deposits when she appeared before the Senate Finance Committee.

Janet: I can reassure the members of the committee that our banking system is sound and that Americans can feel confident that their deposits will be there when they need them.

Dick: Now, the Justice Department and Securities Exchange Commission are investigating the collapse of SVB. In the newsroom, Dick Brennan, CBS 2 News.

Kristine: All right, Dick, thank you.

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