Jamie Dimon leads next steps on First Republic rescue. Other key regional banks holding up.
Other key regional banks are holding up as the bank crisis enters a third week, but First Republic is still under strain.
Here are a few key excerpts from a WSJ report on this fast-evolving situation involving JP Morgan Chase CEO Jamie Dimon trying to help First Republic.
The discussions, while preliminary, have focused on how the industry could arrange for an investment that would boost the bank’s capital, according to people familiar with the matter. Among the options on the table, the people said, is an investment in First Republic by the banks themselves.
Eleven big banks banded together last week to deposit $30 billion in First Republic in an effort to restore confidence in the lender. The San Francisco-based bank’s customers have withdrawn some $70 billion since the collapse of Silicon Valley Bank earlier this month, The Wall Street Journal previously reported.
The plan could involve the banks converting some or all of the $30 billion in deposits into a capital infusion, some of the people said.
A sale or outside capital injection are also among the options on the table, people familiar with the matter said.
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Read WSJ report below on fluid situation involving JP Morgan Chase CEO Jamie Dimon working on relief solutions for First Republic
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– WSJ News Exclusive | Jamie Dimon Leading Efforts to Craft New First Republic Bank Rescue Plan