2023-04-12 03:23:37 ET
- Several major U.S. banks that contributed a significant portion of the $30 billion in deposits to aid First Republic Bank last month , are now planning to bolster their reserves by setting aside around $100 million each, according to Bloomberg reports.
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The group includes JPMorgan Chase & Co ( JPM ), Wells Fargo & Co ( WFC ), Citigroup Inc ( C ) and Bank of America ( BAC ), according to the report, citing people familiar with the matter.
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The decision to bolster their reserves is driven by accounting regulations that require provisions to be set aside for potential losses across various assets, the report added.
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Eleven lenders, including the eight members of the Financial Services Forum, pledged the deposits for First Republic a lifeline of a combined $30 billion in deposits last month.
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Last week on Friday, First Republic Bank ( FRC ) was under pressure after the organization announced that it is suspending payment of its quarterly cash dividend on seven series of its preferred shares.
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Looking ahead and investors have now turned their attention towards inflation data which is set to be released on Wednesday which can provide clues on the Federal Reserve's policy decision in May. Major U.S. banks will begin reporting first-quarter earnings from Friday.
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More on the Bank Crisis and First Republic ( FRC ):
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First Republic Vs. Western Alliance Stock: Which Is The Better Value Buy?
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First Republic Bank stock sinks to all-time low as S&P downgrades again
For further details see:
US banks to bolster reserves after shoring up First Republic - report