The American First Republic, in collaboration with the Israeli trading and brokerage company eToro, actively offered services to clients in placing deposits and acquiring crypto assets through regulated and licensed exchanges. According to Forbes magazine, the bank was among the ten largest private banks in the United States for the last four years in a row.
Amid the news of the closure of Silicon Valley Bank and Signature Bank, the bank was unable to withstand the massive appeal of depositors who withdrew more than $70 billion in deposits from the bank. As a result, the bank’s market capitalization fell to $3 billion.
The Wall Street Journal reports that the troubled First Republic Bank has turned to financial regulators, the banking community and consulting firm Lazard for help out of the crisis, which includes selling, reducing assets or recapitalizing the bank. Last week, 11 banks placed more than $30 billion in deposits with First Republic Bank to restore depositor confidence.
In addition, First Republic received additional liquidity from the Federal Reserve System and JPMorgan Chase, which partially improved and diversified the financial position of the credit institution. The amount of financial assistance provided by the parties is not disclosed.
A few days ago, the US Federal Deposit Insurance Corporation (FDIC) sold Signature bank to competitors from Flagstar Bank without a cryptocurrency part of the business.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
