The bank’s executives came together in recent days to formulate the plan, discussing it with Treasury Secretary Janet Yellen and other officials and regulators in Washington, D.C. JPMorgan Chase, Citigroup, Bank of America and Wells Fargo are each making a $5b uninsured deposit into First Republic, the banks said in a statement. Morgan Stanley and Goldman Sachs are kicking in $2.5b apiece, while five other banks are contributing $1b each.
“This show of support by a group of large banks is most welcome, and demonstrates the resilience of the banking system,” the Treasury Department, Federal Reserve, Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency said in a joint statement.