Several US banks, including JPMorgan Chase, Morgan Stanley, and Citigroup, poured $30 billion into the ailing First Republic Bank amid a crisis that started with the collapse of Silicon Valley Bank last week.
The rescue package initiated by US Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell, and JPMorgan Chase CEO Jamie Dimon prevented the lender from suffering the same fate as the two other mid-size US banks that collapsed last week.
Even the Swiss lender Credit Suisse had to borrow up to $54b from the central bank due to the market turmoil.
Following this, the global banking industry is now being battled by a crisis, causing banking stocks worldwide to drop.
Several US banks, including giants JP Morgan Chase, Morgan Stanley, and Citigroup, are reportedly depositing up to $30 billion in deposits in stricken First Republic Bank (FRC.
N). The rescue package for the bank subjected to a widening crisis triggered by the collapse of two other mid-size US banks this week was initiated by US Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell, and JPMorgan Chase CEO Jamie Dimon.
These authorities discussed the deal on Tuesday.
The rescue deal came after the collapse of Silicon Valley Bank, which led to bond-related losses that piled up when interest rates escalated last year, making banking stocks worldwide suffer, according to the France 24 article.
Swiss bank Credit Suisse had to borrow up to $54b from its central bank to prop up liquidity, while national authorities supported or approved rescue packages worth billions of dollars, backing investor sentiment.
On the other hand, the Reuters article noted that the bank rescue caused a risk-on rally that corresponded with the impressive funding packages offered by national authorities.
It noted that barring any unforeseen events, Asia should round off a tumultuous week on a high note the following day, which happened.