First Republic Bank has been able to meet withdrawal demands on Monday with the help of additional funding from JPMorgan Chase, the bank’s executive chairman told CNBC’s Jim Cramer.
Jim Herbert told Cramer that the bank was not seeing massive outflows of deposits and that the business was operating as usual. Herbert declined to say specifically how much had been withdrawn, Cramer said.
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First Republic announced Sunday it had received additional liquidity from the Federal Reserve and JPMorgan. That brought the bank’s unused liquidity to $70 billion, First Republic said, before accounting for potential use of the Bank Term Loan Facility that the Fed created over the weekend.
However, the stock plunged Monday and was halted after falling 76%.
Herbert is founder of First Republic and served as CEO from 1985 to 2022.
The concern around First Republic comes after the recent failure of Silicon Valley Bank and Signature Bank. Like SVB, First Republic caters to wealthy clients and companies whose deposits exceed the threshold for federal insurance.
Source: CNBC