the central bank of the united states [Reserva Federal (Fed)] announced Thursday that it had lent about $12 billion to the country’s banks since Sunday, when it announced it would advance enough to cover customer withdrawals.
In a joint statement with the Treasury Department and the bank deposit guarantee agency (FDIC), the financial authorities had presented several measures to reassure individuals and companies, after the bankruptcy of the Californian bank Silicon Valley Bank (SVB).
On Thursday it was announced that a group of large US banks will participate in the rescue of First Republic Bank, one of the most suffered after the intervention in Silicon Valley Bank last week.
Fitch Ratings and S&P Global have revised the ‘rating’ of San Francisco-based First Republic to the so-called ‘junk’ category.
The amount advanced by these large banks amounts to 30 billion dollars.
“Bank of America, Citigroup, JPMorgan Chase and Wells Fargo today announced that they will each deposit $5 billion with First Republic Bank. Goldman Sachs and Morgan Stanley will each deposit $2.5 billion and BNY Mellon, PNC Bank, State Street, Truist and US Bank will each deposit $1 billion,” according to a statement.
Also this Thursday, Treasury Secretary Janet Yellen declared that the US financial system “is sound” and that citizens can trust that their deposits “are safe.”
Source: TSF
