STORY: Several large banks are in talks to deposit billions of dollars at First Republic Bank to salvage the embattled lender, according to people familiar with the matter.
The banks are set to deposit $29 billion, one of the sources said.
This follows a round of financing on Sunday raised through JPMorgan Chase , which gave First Republic access to a total of $70 billion in funds, but failed to calm investors as worries of a contagion deepened in the wake of two large-scale collapses in the banking industry.
Said Ball, "First Republic, historically and correctly, has been known as a bank of the rich. And that I think is what spawned the purported interest of JP Morgan.... [JP Morgan CEO] Jamie Dimon understands banking for the rich."
About 70% of its deposits are uninsured, above the median of 55% for medium-sized banks and the third highest in the group after Silicon Valley Bank and Signature Bank, according to a Bank of America note.