Big banks are struggling to pull another small bank out of the depths. This time it is JPMorgan Chase trying to rally its banking Speers to stabilize First Republic Bank.
The Wall Street Journal reports that eleven big banks have pooled together $30 billion to deposit into First Republic’s coffers after bank customers withdrew approximately $70 billion.
This effort is being spearheaded by JPMorgan Chase CEO Jamie Dimon. According to the Journal, “JPMorgan’s investment bankers were hired to advise First Republic on its various options, one of the people said.” Hired by who? The Federal Government? Maybe because he is known as one of the major players to navigate the banks out of the 2008 crisis, helped along by the Fed of course.
The Federal Reserve is meeting this week to discuss a possible interest rate hike and other regulatory responses to the banking crisis.
