HomeTop U.S. NewsFirst Republic Bank Receives Additional Funding from Fed and JPMorgan

First Republic Bank Receives Additional Funding from Fed and JPMorgan

First Republic Bank has received fresh funding from the Federal Reserve and JPMorgan Chase & Co amid fears that it could be in the same kind of trouble that led to the collapse of Silicon Valley Bank (SVB).

According to the Wall Street Journal, First Republic now has $70 billion in unused liquidity while still being able to tap into Fed’s lending program.

“First Republic’s capital and liquidity positions are very strong, and its capital remains well above the regulatory threshold for well-capitalized banks,” First Republic said in a statement released on Monday.

The last week saw two of the largest bank failures in U.S. history. Silicon Valley Bank was first to fold on Friday following a massive bank run, while crypto-friendly Signature Bank followed the suit later in the week.

Since the First Republic is considered to have a similar profile to the previous two, many depositors started fearing for their money. Some bigger clients have started diversifying their banking options, causing even more concerns. 

The funding from the Fed and JPMorgan was expected to alleviate some concerns, but that isn’t proving to be the case yet. First Republic’s shares plummeted 65 percent on Monday, and it wouldn’t be a surprise if the dip continues in the following days.

Kroger and Albertsons to Sell More Stores in Attempts to Get Merger Approval

Kroger and Albertsons have announced plans to sell more stores in an attempt to get the green light for their $25 billion merger. Kroger reached...

Stocks Continue Slide as Israel-Iran Tension Ensues

Stocks on the New York Stock Exchange continued their drop-off on Friday as investor anxiety rose following Israel's retaliatory strike against Iran. Market composure...

United Airlines Stock Jumps 14% After Strong Q1 Results and Optimistic Projections for Q2

Following a strong first-quarter earnings report, United Airlines saw its stock jump 14% on Wednesday. Investors were also intrigued by the company’s optimistic projections...