(News Bulletin 247) – First Republic Bank announced on Thursday evening that it would benefit from $30 billion in uninsured deposits from 11 major American banks, an injection of liquidity that the Californian bank welcomes as a testimony of ‘ trust in its activities.

The initiative comes from several leading institutions, namely Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, Goldman Sachs and Morgan Stanley, but also from second-tier banks such as Bank of New York Mellon, PNC Bank, State Street, Truist and US Bank.

“Their collective support strengthens our cash position, illustrates the consistent quality of our business, and is a vote of confidence in First Republic and the entire U.S. banking system,” said Jim Herbert, Founder and Chairman of the Board. administration, and Mike Roffler, the San Francisco-based bank’s chief executive.

In its press release, First Republic points out that withdrawals of funds from its customers have “slowed considerably” lately and that it is currently focused on reducing its debt and cleaning up its balance sheet.

During this period of ‘recovery’, the board of directors decided to suspend the payment of the quarterly dividend.

With the contribution of the 11 aforementioned banks, its cash position will increase to 64 billion dollars, against 34 billion dollars as of Wednesday evening.

Added to this are lines of financing granted by the American Federal Reserve and the Federal Home Loan Bank, a federal agency providing loans to local banks, it is specified in the press release.

After jumping 10% last night on the New York Stock Exchange, the First Republic title was expected to fall 6.5% on Friday morning. The title has lost nearly 70% of its value since the appearance of fears about the health of American regional banks, about a week ago.

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