On Friday, the Federal Deposit Insurance Corporation (FDIC) announced that it will be placing First Republic Bank under receivership making this the third bank collapse in the past two months under President Joe Biden’s watch.
The FDIC’s protections will ensure deposits in the bank up to $250,000, however, that didn’t stop many businesses and individuals with holdings in the bank to take their funds out before the collapse.
The San Francisco-based bank has struggled to maintain solvency following the collapse of Silicon Valley Bank in early March.
First Republic was saved back in March by the banking industry with an emergency loan to save it from failing.
Wells Fargo, JPMorgan Chase, Bank of America, and Citigroup combined to dedicate $20 billion in deposits in order to save the struggling mid-sized bank from collapse. Each major banking institution supplied $5 billion each while Goldman Sachs Group Inc. and Morgan Stanley each pitched in $2.5 billion.
PNC, BNY Mellon, Truist, U.S. Bancorp, and State Street also all dedicated $1 billion each to save First Republic.
“This action by America’s largest banks reflects their confidence in First Republic and in banks of all sizes,” the banks said in a statement, as reported by Bloomberg.
According to The Daily Wire, First Republic’s stock fell 94.4 percent from the beginning of the year with a particular shock taking place between Monday and Wednesday when it fell 57.6 percent from an already previous low for the struggling bank.