Several major US financial institutions are reportedly preparing a coordinated liquidity move involving First Republic Bank. Private media outlets indicate that Saving First Republic Bank could reach up to 30,000 million in deposits or guarantees, with an official decision expected this Thursday. The plan appears to center on a substantial support package designed to stabilize liquidity and reassure markets in the midst of broader banking sector volatility.
According to prominent outlets, JPMorgan Chase and Bank of America are each anticipated to contribute five billion dollars to the effort. The Wall Street Journal corroborates a similar level of support from Citigroup, while The New York Times notes that Goldman Sachs and Morgan Stanley may each add two and a half billion dollars if the deal proceeds. A consortium of regional institutions might participate with roughly one billion apiece, helping to build a diversified funding coalition. These estimates reflect the scale of cross‑institution coordination reportedly under consideration to shore up First Republic’s balance sheet.
Following media discussions, First Republic’s stock moved higher in afternoon trading, gaining more than five percent after earlier declines observed in the morning session. This reaction underscores investor sensitivity to potential rescue plans and the ongoing assignment of value to confidence measures in regional banks facing funding pressures.
First Republic has recently carried one of the higher uninsured deposit ratios among major US banks. Financial services analysts have highlighted this exposure in benchmarking notes, noting the bank’s reliance on large, uninsured deposits relative to insured deposits and the potential implications for liquidity risk during market stress.
In related credit ratings activity, First Republic was reclassified by two leading rating agencies, with Fitch Ratings and S&P Global placing the bank in a lower category. While the downgrade signals increased risk perception, it also foreshadows heightened scrutiny of the bank’s funding structure and the resilience of its customer base in a tightening liquidity environment. Authorities previously acted to resolve distress at other institutions under similar pressure, an event that triggered broader market jitters and amplified the need for credible, timely intervention to prevent a wider contagion.