An 11-bank plan to save First Republic began with a brainstorming session between JPM CEO Jamie Dimon, Fed chair Jerome Powell and Treasury secretary Janet Yellen
The next day, Dimon took this idea to some of his peers. At a Bank Policy Institute event, he approached other executives, including Citigroup CEO Jane Fraser, and commitments for $5 billion in uninsured deposits from Citigroup (C), Bank of America (BAC) and Wells Fargo (WFC) soon followed. JPMorgan also agreed to put in $5 billion.
An infusion of $20 billion was considered enough, but these four banks decided to seek more from smaller rivals on Wednesday and Thursday. U.S. Bancorp (USB), Truist (TFC), PNC (PNC), State Street (STT) and Bank of New York Mellon (BK) each agreed to deposits of $1 billion. The last to join, according to the people familiar with the events, were Goldman Sachs (GS) and Morgan Stanley (MS). They each agreed to deposit $2.5 billion.
why are you'all calling it a loan???
they deposited cash as unsecured deposits. where they got the cash that they 'don't need' or
have 'no plans for in the near future' (in other words for the duration of the promise,) its up to
them.
big question is: are those unsecured deposits guaranteeded implicitly by recent FDIC precedent??
