2:12 p.m. ET, March 21, 2023
First Republic shares are up 53%, but top bank CEOs are not working on a new bailout plan, a source says
From CNN’s Matt Egan and Allison Morrow
(Siegfried Anthony/STAR MAX/IPx/AP)
Top bank CEOs are not working on a new rescue plan for regional bank First Republic, a person familiar with the case told CNN.
First Republic received a $30 billion lifeline last week from 11 of the country’s largest banks, including JPMorgan Chase, Bank of America and Citigroup.
Despite that industry-led bailout, First Republic’s stock price continued to fall and credit ratings were downgraded.
The Wall Street Journal reported Monday that Jamie Dimon, CEO of JPMorgan, is leading talks between bank CEOs about new efforts to stabilize First Republic, including a possible investment by the banks themselves in First Republic.
The 11 bank CEOs discussed the situation in the First Republic, the person familiar with the case told CNN. However, the source emphasizes that no separate rescue plan for First Republic is currently being worked on by bank CEOs.
Meanwhile, the CEOs of major banks will meet in Washington on Tuesday and Wednesday for a previously scheduled meeting, the person familiar with the matter said.
That meeting is being held by the Financial Services Forum, an alliance of the eight largest banks including Bank of America, Goldman Sachs and JPMorgan.
First Republic and the broader stress in the banking system will be among the topics discussed at the bank’s CEO meeting, the source said.
After hitting a record low on Monday, shares of First Republic Bank rose 53% Tuesday afternoon as Wall Street anticipated another industry-led lifeline or possible sale of the beleaguered banks.
Bank stocks were generally higher on Tuesday.
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