{"id":18837,"date":"2023-03-17T15:35:22","date_gmt":"2023-03-17T15:35:22","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/11-banks-bail-out-first-republic-bank-from-collapse-bitcoin-news\/"},"modified":"2023-03-17T15:35:22","modified_gmt":"2023-03-17T15:35:22","slug":"11-banks-bail-out-first-republic-bank-from-collapse-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/11-banks-bail-out-first-republic-bank-from-collapse-bitcoin-news\/","title":{"rendered":"11 Banks Bail Out First Republic Bank From Collapse \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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After the fall of Silvergate Bank, Silicon Valley Bank (SVB), and Signature Bank (SNBY), First Republic Bank, a commercial bank and wealth management services provider, is the latest financial institution to receive a bailout. Close to a dozen lenders announced they will deposit $30 billion into the beleaguered bank\u2019s coffers to shore up liquidity. U.S. banks have suffered from the financial contagion that followed the three bank failures last week. According to reports, depositors removed $8.8 billion from Charles Schwab Corporation\u2019s prime money market funds.<\/strong><\/p>\n

Impact of Recent Bank Failures on U.S. Banking Industry Spurs Wave of Bailouts<\/h2>\n

Several banks received bailouts<\/a> in the past week due to the collapse of three major U.S. banks. This event shook the banking industry, and banks of all sizes, including giants like Bank of America and JPMorgan, saw a decline in their stocks. After Silvergate, SVB, and SNBY failed, banks borrowed approximately $164.8 billion<\/a> from the Federal Reserve to secure liquidity. The collapse has also impacted international financial institutions, as Credit Suisse received<\/a> a 50 billion Swiss franc bailout from the Swiss National Bank following the bailout of SVB and SNBY depositors by the U.S. central bank, Treasury, and Federal Deposit Insurance Corporation (FDIC).<\/p>\n

First Republic Bank (NYSE: FRC<\/a>) experienced a tumultuous week with a 50.41% decline in its stock value against the U.S. dollar in the last five days. Despite exploring<\/a> various options, including a sale, to improve its liquidity during this chaos, the bank founded in 1985 faced the risk of failure. However on Thursday, 11 banks, including Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, Goldman Sachs, Morgan Stanley, BNY Mellon, PNC Bank, State Street, Truist Bank, and US Bank, deposited $30 billion into First Republic Bank (FRC), saving it from a possible collapse.<\/p>\n

The press release<\/a> addressing the funding mentions that, after the government receiverships of SVB and SNBY, \u201ca few banks experienced uninsured deposit outflows.\u201d The 11 lenders\u2019 statement indicates that \u201cthe actions of the largest banks in the U.S. demonstrate their trust in the country\u2019s banking system.\u201d First Republic Bank\u2019s (FRC) shares managed to recover on Thursday before the market closed, finishing 9.98%<\/a> higher and gaining $3.11 per share. In August 1986, FRC shares were $10 each, and on March 16, 2023, they traded at $34.27 per share.<\/p>\n

In addition to the 11 lenders who mentioned outflows of uninsured deposits, a recent report<\/a> by Bloomberg contributor Silla Brush revealed that Charles Schwab Corporation experienced \u201cnet outflows of $8.8 billion from its prime money market funds this week.\u201d Bloomberg\u2019s data suggests that it was the largest number of redemptions in six months, and Schwab customers withdrew funds from a pair of Schwab Value Advantage Money funds.<\/p>\n

Investors are also concerned<\/a> that Pacwest Bancorp may face similar issues, as the financial holding company\u2019s stock has fallen 27.16% in the last five days. Several other bank shares, including stocks from Synchrony Financial, CNB Financial, Discover Financial, and Capital One, have also recorded losses in the past week.<\/p>\n

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Bailout<\/a>, Bailouts<\/a>, Bank of America<\/a>, Banking<\/a>, Banking Bailouts<\/a>, Banking Industry<\/a>, banks<\/a>, BNY Mellon<\/a>, capital one financial<\/a>, Cash Injection<\/a>, Charles Schwab Corporation<\/a>, CitiGroup<\/a>, CNB Financial<\/a>, credit suisse<\/a>, deposit outflows<\/a>, Discover Financial<\/a>, FDIC<\/a>, Federal Reserve<\/a>, Financial Institutions<\/a>, First Republic Bank<\/a>, Goldman Sachs<\/a>, jpmorgan<\/a>, Liquidity<\/a>, morgan stanley<\/a>, Pacwest Bancorp<\/a>, PNC Bank<\/a>, Signature Bank<\/a>, Silicon Valley Bank<\/a>, Silvergate Bank<\/a>, state street<\/a>, stimulus<\/a>, Synchrony Financial<\/a>, Treasury<\/a>, Truist Bank<\/a>, Uninsured Deposits<\/a>, US Bank<\/a>, US Central Bank<\/a>, Wells Fargo<\/a><\/div>\n<\/div>\n

What do you think the long-term effects of these bank failures and subsequent bailouts will be on the U.S. banking industry and the wider economy? In the comments section below, let us know what you think about this subject.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons, Formatoriginal \/ Shutterstock.com<\/em><\/p>\n

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