Old banks of the United States are discussing a joint bailout of the First Republic Bankthe next entity that can fall in that country after the Silicon Valley Bank (SVB) and the Signature Bank. Among those who would participate in an injection of capital they find each other JPMorgan, Citigroup, Bank of America, Wells Fargo, Morgan Stanley y Goldman Sachs. Other entities would also enter such as U.S. Bancorp y PNC.
The agreement is not closed, although some sources assure that it could be reached this very Thursday. It would need the approval of North American regulators and the trigger would be the collapse of the First Republic in If sosince it fell more than 20% in Wall Street due to fears about his solvency.
This bank has come under the spotlight after the collapse of the SVB as fears spread that other regional banks could suffer the same fate. Clients have withdrawn billions in deposits from the First Republic in recent days, though for now it has parried the blow with an injection of liquidity of 70,000 million by the Federal Reserve and the aforementioned JP Morgan.
To compound fears, Standard & Poor’s downgraded its credit rating to the category of junk bondwhich adds more uncertainty about its future.
The value has lost 75% on the stock market so far this week, and its capitalization has gone from 21,000 million dollars on March 8, when the SVB crisis began, to less than 5,000 million.
