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JPMorgan CEO leading talks for new First Republic rescue plan - WSJ

Published 03/20/2023, 12:13 PM
Updated 03/20/2023, 12:51 PM
© Reuters. FILE PHOTO: Traders gather at the post where First Republic Bank as the stock is halted from being traded on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., March 15, 2023. REUTERS/Brendan McDermid

(Reuters) -JPMorgan Chase & Co CEO Jamie Dimon is leading talks with the chiefs of other big banks about fresh efforts to stabilize First Republic Bank (NYSE:FRC), the Wall Street Journal reported on Monday, citing people familiar with the matter.

Shares of First Republic fell 46% to $12.41 as investors fretted that the $30 billion deposited by several big U.S. banks into the lender would not be enough to ease its troubles.

The banks are considering an investment into First Republic, the WSJ report said, adding that the plan could involve converting some or all of the $30 billion of deposits into a capital infusion.

JPMorgan (NYSE:JPM) and First Republic declined to comment on the report. A spokesperson for First Republic pointed to an earlier statement where the bank said it was "well-positioned to manage short-term deposit activity".

On Sunday, ratings agency S&P Global (NYSE:SPGI) downgraded First Republic deeper into junk status, citing persistent risks to the lender's liquidity.

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