JPMorgan CEO talks on new First Republic Bank rescue plan
First Republic Bank – According to people familiar with the situation, JPMorgan Chase & Co CEO Jamie Dimon is leading discussions with the CEOs of other major banks about new efforts to stabilize First Republic Bank.
Shares of First Republic fell 46% to $12.41 as investors worried that the $30 billion deposited into the lender by several major US banks would not be enough to alleviate its problems.
The banks are thinking about investing in First Republic, according to the WSJ, and the plan could include converting some or all of the $30 billion in deposits into capital.
First Republic Bank
JPMorgan and First Republic did not respond to the report. According to a First Republic spokesperson, the bank was “well-positioned to manage short-term deposit activity” in an earlier statement.
S&P Global downgraded First Republic to junk status on Sunday, citing persistent risks to the lender’s liquidity.