11 American Banks Deposit $30 Billion to Support "First Republic"

Eleven banks announced deposits totaling $30 billion to address the banking crisis in America, thus supporting First Republic Bank. These support offers from a group of major banks demonstrate the resilience of the banking system. The Federal Reserve states that it is prepared to provide liquidity through the discount window to all eligible institutions. The support group explained in a statement: "This action by the largest banks in America reflects confidence in First Republic and in banks of all sizes, and shows the collective commitment to assist banks in serving their customers and communities." Sources told CNBC that the deposits will be required to remain at First Republic for at least 120 days. Shares of regional banks initially fell on Thursday but rebounded after reports emerged regarding the deposit plan. This news comes after First Republic's stock experienced a significant drop in recent days, following the collapse of Silicon Valley Bank. Over the weekend, both banks had a large number of uninsured deposits, as did First Republic, raising concerns that customers would withdraw their funds. First Republic's American stock closed up 10.3% following the announcement of the deposit to support it.