- Ballestas Group
Awaiting the Fed's Decision
This was a difficult week for North American banks, especially for the so-called regional ones which have faced large deposit outflows. After Silicon Valley Bank closed last week and Signature Bank closed this week First Republic Bank, was in the eye of the hurricane. The bank is based in San Francisco and has a business model similar to that of Silicon Valley Bank.
On Thursday morning, the United States government carried out a rescue plan for the First Republic in which it urged the 11 largest banks to provide it with liquidity through deposits totaling USD 30 billion, over a period of 120 days. In turn, the institution suspended the payment of its dividends. Federal Reserve Chairman Jerome Powell, Treasury Secretary Janet Yellen and the FDIC welcomed the support from the group of big banks and said it shows the resilience of the banking system. Likewise, the FED said that it is ready to provide liquidity to eligible banks.