A deal between a group of the country’s largest banks to deposit about $30 billion in First Republic Bank could come as soon as 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, US Bancorp, Truist Financial Corp. and PNC. Financial Services Group Inc..
A First Republic Bank spokesman declined to comment on the new deposits.
News of a potential bailout sent shares of First Republic Bank as high as $39 per share in early Thursday afternoon trading on the New York Stock Exchange.
As a TechCrunch colleague alex william As reported this week, First Republic’s trading week started with a challenge, as shares plunged 62% on March 13 as the bank was caught up in the Silicon Valley Bank collapse. First Republic shares were rallying as news broke about possible new deposits.
The banks recent 8-K submission 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 TechCrunch that it declined to comment.
