What's happened
Large US banks injected $30bn in deposits into First Republic Bank to rescue the lender caught up in a widening crisis triggered by the collapse of two other mid-size US lenders over the past week.
Why it matters
The rescue of First Republic Bank is significant as it shows the potential for a wider banking crisis and the need for large banks to step in to prevent further collapses. The injection of $30bn in deposits by large US banks is a significant amount and shows the scale of the problem.
What the papers say
All sources report on the rescue of First Republic Bank by large US banks, with Reuters and Gulf News highlighting the potential for a wider banking crisis. Reuters also reports on the emergency central bank loan of up to $54bn to Credit Suisse to shore up its liquidity. Gulf News reports on the impact of the rescue on investor confidence and the relief rally in Asian stocks.
How we got here
Over the past week, two mid-size US lenders collapsed, triggering a widening banking crisis. The rescue of First Republic Bank by large US banks shows the potential for a wider banking crisis and the need for large banks to step in to prevent further collapses. The injection of $30bn in deposits by large US banks is a significant amount and shows the scale of the problem. The emergency central bank loan of up to $54bn to Credit Suisse also highlights the potential for a wider banking crisis.
More on these topics
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The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.
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First Republic Bank is a commercial bank and provider of wealth management services headquartered in San Francisco. It caters to high-net-worth individuals. It operates 93 offices in 11 states primarily in New York, California, Massachusetts, and Florida.
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Credit Suisse Group AG is a global wealth manager, investment bank and financial services company founded and based in Switzerland.