- The bank is asking others to purchase bonds from First Republic at above-market rates for a loss of a few billion dollars.
- They say if they don’t then the same banks will face roughly $30 billion in FDIC fees when First Republic fails.
Following the sudden collapse of several banks last month, the country’s largest lenders banded together to inject roughly $30 billion in deposits into First Republic.
- Did it work? No. That solution proved fleeting after the depth of the company’s problems became known.
The bank’s stock has been in free fall since disclosing Monday that its deposits dropped a staggering 41% recently, leaving it with $104.5 billion in deposits, including the infusion from big banks.
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