BREAKING: Big Banks Take Unprecedented Action to Stop A Total Banking Collapse

On Thursday, a series of big banks took major action to save First Republic Bank, which was impacted severely by the collapse of Silicon Valley Bank and Signature Bank last week, from its total collapse.

Wells Fargo, JPMorgan Chase, Bank of America, and Citigroup have combined to dedicate $20 billion in deposits in order to save the struggling mid-sized bank from collapse. Each major banking institution will supply $5 billion each while Goldman Sachs Group Inc. and Morgan Stanley will each pitch in $2.5 billion.

PNC, BNY Mellon, Truist, U.S. Bancorp, and State Street also all dedicated $1 billion each to save First Republic.

“This action by America’s largest banks reflects their confidence in First Republic and in banks of all sizes,” the banks said in a statement, as reported by Bloomberg.

The bank’s commitment will last at least 120 days as First Republic looks to find a buyer as their stock collapsed earlier this week from a high $115 a share on Wednesday to $34 as of this report.

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America’s top banking officials applauded the move by the big banks with Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell, FDIC Chairman Martin Gruenberg, and Acting Comptroller of the Currency Michael Hsu writing in a statement: “Today, 11 banks announced $30 billion in deposits into First Republic Bank. This show of support by a group of large banks is most welcome, and demonstrates the resilience of the banking system.”

Truist CEO Bill Rogers said in a statement to Bloomberg that “This unprecedented private sector collaboration is a powerful step to bolster liquidity and reflects our confidence in the critical role of regional banks in our economy and across the communities we serve,”

First Republic is in a similar situation to what Silicon Valley Bank was in last week thanks to its $271 billion in assets. In comparison, SVB had $212 billion and Signature Bank had $110 billion in assets prior to their crash, as reported by The Daily Wire.

As the banking system is still attempting to recover from the second-largest bank failure in American history, it is clear that President Biden’s reassurances that the system is fine are not rooted in reality. Had it been fine, this rescue plan would not have needed to take place but hopefully there will not be more consequences down the road as the Federal Reserve continues to raise rates to get inflation under control. Rising rates could spell disaster for medium size banks like First Republic and others who have limited on-hand assets.

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