Credit Suisse lifeline, First Republic rescue: What you need to know

(Reuters) – FX Signals –  A $30 billion lifeline for First Republic Bank (NYSE:FRC) hosed down market fears about an imminent banking collapse on Friday, but a late tumble in the troubled U.S. lender’s shares showed investors were still worried about cracks in the sector.

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Large U.S. banks injected the funds into the San Francisco-based bank on Thursday, swooping in to rescue the lender caught up in a widening crisis triggered by the collapse of two other mid-size U.S. lenders over the past week.


* First Republic Bank received $30 billion in deposits from several big banks, the banks said in a statement on Thursday, as part of a rescue package for the lender. Involved in the rescue are JPMorgan Chase & Co (NYSE:JPM), Citigroup Inc (NYSE:C), Bank of America Corp (NYSE:BAC), Wells Fargo (NYSE:WFC) & Co, Goldman Sachs Group Inc (NYSE:GS), Morgan Stanley (NYSE:MS) and others.

* Despite the rescue, First Republic’s shares fell 17% in extended trading on Thursday, after it said it was suspending its dividend.

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* Banks sought record amounts of emergency liquidity from the Federal Reserve over recent days in the wake of the failure of Silicon Valley Bank and Signature Bank (NASDAQ:SBNY), which in turn helped undo months of central bank efforts to shrink the size of its balance sheet, Fed data showed on Thursday.

* U.S. Treasury Secretary Janet Yellen said the U.S. banking system remains sound and Americans can feel confident that their deposits are safe.

* Credit Suisse said it was taking “decisive action” to strengthen its liquidity by exercising its option to borrow from the Swiss National Bank up to 50 billion Swiss francs ($54 billion).


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* Wall Street bank JPMorgan said that Credit Suisse’s takeover by another lender, probably its Swiss rival UBS, was the most likely scenario for the embattled bank.

US Dollar Index retreats, euro gains after Credit Suisse

* Japan’s finance ministry, financial regulator and central bank said their officials will meet on Friday to discuss market developments.

* UBS Group AG (SIX:UBSG) and Credit Suisse Group AG are opposed to a forced merger, Bloomberg News reported on Thursday, citing people with knowledge of the matter.

Credit Suisse to borrow up to $54 bln from Swiss National Bank

Stock market today: Dow rallies as major banks race to rescue First Republic

Credit Suisse lifeline, First Republic rescue: What you need to know

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Wall Street closes higher as First Republic helps lift banks

Credit Suisse lifeline, First Republic rescue: What you need to know