Beautiful Virgin Islands

Thursday, Jun 05, 2025

Group of major US banks ride to $30bn rescue of troubled First Republic

Group of major US banks ride to $30bn rescue of troubled First Republic

America's largest banks send a powerful message of solidarity after the sector is clubbed by investors over the impact of rising interest rates.
A group of 11 major banks have clubbed together to provide $30bn (£24.7bn) of cash in an attempt to end a crisis of confidence surrounding another major US bank.

First Republic, a regional lender, was among those to have seen its share price collapse this week amid sector-wide balance sheet scrutiny prompted by the collapse of Silicon Valley Bank (SVB) last Friday.

The rescue funds, provided by peers including JPMorgan, Citi, Bank of America and Wells Fargo, were handed over hours after Switzerland's second-largest lender was granted a €50bn (£44.5bn) lifeline by the country's central bank.

Credit Suisse had come under the same kind of share price assault as First Republic, largely the result of fears that rising interest rates imposed by central banks to tackle inflation had damaged their balance sheets.

Unlike with SVB last week, when the US government effectively took control, it was reported by the Reuters news agency that US Treasury secretary Janet Yellen had discussed a bank-led rescue with JPMorgan's boss as early as Tuesday.

Ms Yellen, a former chair of the US Federal Reserve, was understood to have helped hatch the show of support and resilience in the face of concerns of a new banking crisis.

A joint statement by the banks involved in the rescue said their time-limited deposits demonstrated "their overall commitment to helping banks serve their customers and communities."

First Republic responded: "This support from America's largest banks reflects confidence in First Republic and its ability to continue to provide unwavering exceptional service to its clients and communities."

Its share price recovered from record lows earlier in the day to close almost 10% up.

The Swiss National Bank's loans to Credit Suisse helped it gain 19% on the day following the bloodbath for values on Thursday.

News of the bailout helped wider European stock markets close in positive territory after investors were initially spooked by a 0.5 percentage point interest rate rise by the European Central Bank.

It prioritised its battle against inflation over the market turmoil in a move that sent a clear public signal it was not overly concerned by the crisis of confidence hitting banks.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Global News Roundup: From Ukraine's strategic military strikes and Russia's demands and Tensions Escalate in Ukraine, to serious legal issues faced by Britons in Bali and Trump's media criticism, the latest developments highlight a turbulent landscape
Majority of French Voters View Macron's Presidency as a Failure
Hungary Partners with China to Boost Electric Vehicle Production
‘Vibe Coding’ Emerges as the New DIY Trend
AI Pioneer Yoshua Bengio Warns Models Can Deceive Users
Big Four Firms Rush to Create AI Auditing Systems
Musk’s xAI Pursues $113 Billion Valuation in New Share Sale
Walmart Increases Revenue Despite Shrinking Workforce
Hims & Hers Plans UK and EU Launch of Replica Obesity Drugs
Toyota to Acquire Supplier in $33 Billion Buyout
U.S. Reduces Military Presence in Syria
Trump Demands Iran End All Uranium Enrichment in Nuclear Talks
China Accuses US of Violating Trade Truce
Panama Port Owner Balances US-China Pressures
France Implements Nationwide Outdoor Smoking Ban to Protect Children
German Chancellor Merz Keeps Putin Guessing on Missile Strategy
Mandelson Criticizes UK's 'Fetish' for Abandoning EU Regulations
British Fishing Boat Owner Fined €30,000 by French Authorities
Dutch government falls as far-right leader Wilders quits coalition
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
×