JPMorgan CEO leading talks for new First Republic rescue plan - WSJ
Reuters
Published Mar 20, 2023 12:13PM ET
Updated Mar 20, 2023 12:51PM ET
(Reuters) -JPMorgan Chase & Co CEO Jamie Dimon is leading talks with the chiefs of other big banks about fresh efforts to stabilize First Republic Bank (NYSE:FRC), the Wall Street Journal reported on Monday, citing people familiar with the matter.
Shares of First Republic fell 46% to $12.41 as investors fretted that the $30 billion deposited by several big U.S. banks into the lender would not be enough to ease its troubles.
The banks are considering an investment into First Republic, the WSJ report said, adding that the plan could involve converting some or all of the $30 billion of deposits into a capital infusion.
JPMorgan (NYSE:JPM) and First Republic declined to comment on the report. A spokesperson for First Republic pointed to an earlier statement where the bank said it was "well-positioned to manage short-term deposit activity".
On Sunday, ratings agency S&P Global (NYSE:SPGI) downgraded First Republic deeper into junk status, citing persistent risks to the lender's liquidity.
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Written By: Reuters
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