Wall Street’s Biggest Banks Rescue Teetering First Republic
A plan led by Treasury Secretary Janet Yellen and JPMorgan Chase’s chief executive led to a $30 billion infusion by 11 of the largest U.S. banks.
In an extraordinary effort to stave off financial contagion and reassure the world that the American financial system was stable…
The arrangement was without precedent in decades, and an indication of how dire the banking sector’s predicament had become within a week. With its echoes of the 2008 financial crisis, the collapses of Silicon Valley Bank on Friday and Signature Bank on Sunday sparked a panic that appears unlikely to subside immediately.
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Mr. Herbert and the chief executive, Mike Roffler [of First Republic], signed a statement calling the rescue from the larger banks “a vote of confidence for First Republic and the entire U.S. banking system.”
[Since “THE ENTIRE U.S. BANKING SYSTEM” needed “a vote of confidence” there was a dearth of confidence in the entire U.S. banking system.]
