An agreement among a group of the nation’s largest banks to deposit some $30 billion with First Republic Bank could be coming this week, according to a Bloomberg report.
Bloomberg reports that banks said to be involved in this deal include JPMorgan Chase & Co., Citigroup Inc., Bank of America Corp., Wells Fargo & Co., Morgan Stanley, U.S. Bancorp, Truist Financial Corp. and PNC Financial Services Group Inc.
A spokesperson from First Republic Bank declined to comment on the new deposits.
News of a possible rescue sent shares of First Republic Bank as high as $39 per share in early afternoon trading Thursday on the New York Stock Exchange.
As Pointypress colleague Alex Wilhelm reported this week, First Republic’s trading week started off with a challenge with shares falling 62% on March 13 as the bank got caught up in the Silicon Valley Bank collapse. First Republic’s shares were rebounding as news about the potential new deposits went out.
The bank’s recent 8-K filing shows that while it does have some tech clients, that sector accounts for about 4% of its total deposits, according to Alex’s report.
Bloomberg also reported that First Republic was “exploring strategic options” that could include a possible sale. When asked about a sale, the bank told Pointypress declined to comment.