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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 are involved in the rescue, according to the statement.
First Republic’s shares were last up nearly 6% at $32.92 in volatile trading on Thursday. The stock tumbled 36% earlier in the day before reports of the rescue plan sent them up as much as 40%.
The shares have lost two-thirds of their value in the past seven days and are down more than 65% month-to-date.
A round of financing on Sunday raised through JPMorgan Chase & Co, 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.
The rescue effort was initiated by banks but had strong backing and encouragement from the government, according to a person with knowledge of the matter.
Founded in 1985, First Republic had $212 billion in assets and $176.4 billion in deposits as of the end of last year, according to its annual report.
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 (NASDAQ:SBNY), according to a Bank of America note.
Earlier on Thursday, Reuters reported PacWest Corp is also in talks about a liquidity boost with investment firm Atlas (NYSE:ATCO) SP Partners.
Bloomberg News reported earlier on the rescue package and its participants.
