Jamie Dimon heads to First Republic Bank with a bag of money
A number of large and medium US banks announced that they would provide a bag of money up to $30 billion for deposit at First Republic. The efforts were spearheaded by some of the biggest banks including:
Now, this week, the movement of withdrawals out of of Silicon Valley Bank and Signature Bank have had to go somewhere. The JPM Morgan’s of the world benefited from the flows out of SVB and Signature. So although the Fed is being the lender at last resort, the banks may already have the funds ready to go.
So it is time to take the bag of money from the likes of JPM, and deposit it at Republic Bank as a sign of solidarity and to stem any threat of a run. That is the hope at least.
