A group of major US banks have bailed out First Republic Bank with a $30 billion rescue package after the bank experienced a mass exodus of customers following the collapse of two other banks last week.
The banks, including JP Morgan, Wells Fargo, and Bank of America, have put in the deposit to keep First Republic going, with 11 banks in total contributing to the bailout.
First Republic is considered a niche bank dealing primarily with affluent clients on the west and east coasts of the US.
The bailout is seen as a lifeline for the bank and will keep it going for at least 120 days.
The move by the banks helped the stock market rally after yesterday’s panic on Wall Street caused by the bank crisis.
All three indices finished in the green, with the Dow up over 370 points, the NASDAQ up over 280 points, and the S&P climbing nearly 70 points.
The bailout is viewed as a way to contain the crisis and prevent it from spreading to other banks.
