2:12 p.m. ET, March 21, 2023
First Republic shares surge 53% but top bank CEOs aren’t working on new rescue plan, source says
From CNN's Matt Egan and Allison Morrow
A First Republic Bank is seen on March 16 in New York City.
(Siegfried Anthony/STAR MAX/IPx/AP)
Leading bank CEOs are not working on a new rescue plan for regional bank First Republic, a person familiar with the matter tells CNN.
First Republic received a $30 billion lifeline just last week from 11 of the nation’s largest banks, including JPMorgan Chase, Bank of America and Citigroup.
Despite that industry-led rescue, First Republic’s share price kept plunging and its credit ratings were downgraded.
The Wall Street Journal reported Monday that JPMorgan CEO Jamie Dimon is leading talks among bank CEOs about fresh efforts to stabilize First Republic, including a potential investment by the banks themselves in First Republic.
The 11 bank CEOs have discussed the First Republic situation, the person familiar with the matter tells CNN. However, the source stresses there is no separate rescue plan for First Republic currently being worked on by the bank CEOs.
Meanwhile, major bank CEOs are gathering Tuesday and Wednesday in Washington for a previously-scheduled meeting, the person familiar with the matter said.
That meeting is being held by the Financial Services Forum, an alliance of the biggest eight banks that includes Bank of America, Goldman Sachs and JPMorgan.
First Republic and the broader stress in the banking system will be among the topics discussed at the bank CEO meeting, the source said.
After hitting a record low on Monday, shares of First Republic Bank surged 53% Tuesday afternoon as Wall Street anticipated another industry-led lifeline or potential sale of the beleaguered banks.
Bank stocks were broadly higher Tuesday.