Eleven of the largest banks in the United States have announced a $30 billion rescue plan for San Francisco-based First Republic, after concerns were raised about the bank’s financial stability following the collapse of two other banks.
Treasury Secretary Janet Yellen was reportedly behind the move, pitching the idea to JPMorgan Chase CEO Jamie Dimon who rallied the other banks.
The move has helped to stabilize the stock markets, which had been fluctuating throughout the week.
Former Federal Deposit Insurance Corporation Chair Sheila Bear has reminded Americans that FDIC insurance covers up to $250,000 per depositor at most banks.
Customers of First Republic, including restaurant owner and chef David Nayfeld, have expressed relief at the news.
Experts advise against changing long-term investment strategies despite recent events.
