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First Republic: Wall Street deposits are smart attempt to allay panic

US banks deposit $30bn into First Republic Bank to restore confidence amidst liquidity concerns. Consortium now effectively creditors. Banks did not buy equity.

  • US banks deposit $30bn into First Republic Bank to restore confidence.
  • Deposit follows a $70bn credit line and borrowing from the Fed.
  • Consortium is now effectively creditors.
  • Banks did not buy an equity stake or purchase First Republic outright.
  • Regional banks must survive as standalone entities.
First Republic: Wall Street deposits are smart attempt to allay panic
Credit lines and deposits remain half measures

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