Big Banks Coordinate to Place Deposits in Troubled First Republic Bank

Posted on 03/17/2023

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On March 16, 2023, First Republic Bank (NYSE:FRC), a private bank and and wealth management company, announced it will receive uninsured deposits totaling US$ 30
billion from Bank of America Corporation, Citigroup, JPMorgan Chase, Wells Fargo, Goldman Sachs, Morgan Stanley, Bank of New York Mellon Corporation, PNC Bank, State Street Corporation, Truist Financial Corporation, and U.S. Bank (U.S. Bancorp).

Breakout
US$ 5 billion each: Bank of America Corporation, Wells Fargo, Citigroup, and JPMorgan Chase

US$ 2.5 billion each: Goldman Sachs and Morgan Stanley

US$ 1 billion each: Truist Financial Corporation, PNC Bank, U.S. Bancorp, State Street Corporation, and Bank of New York Mellon Corporation.

As previously announced, First Republic obtained additional liquidity through additional borrowing capacity. It has since drawn on this borrowing capacity following recent industry events.

As of March 15, 2023, the Bank had a cash position of approximately US$ 34 billion, not including the US$ 30 billion of uninsured deposits from Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, Goldman Sachs, Morgan Stanley, Bank of New York Mellon, PNC Bank, State Street, Truist, and U.S. Bank with an initial term of 120 days at market rates. First Republic Bank is focused on reducing its borrowings and evaluating the composition and size of its balance sheet going forward.