Shares of several banks in the U.S. have plunged following the sale of First Republic Bank to JP Morgan by federal authorities.
In an emergency government-led intervention, JPMorgan Chase & Co. won the bidding to acquire First Republic Bank.
Even as shares of many of its competitors stabilised, First Republic’s stock price suffered a catastrophic decline.
The fact that the central banks are expanding swap lines shows how severe the effects of the bank crises have become.
A group of American banks are preparing to lend $30 billion to First Republic Bank to save it from collapsing.
The S&P 500 on Wall Street lost 1.6 per cent at the start of trade, wiping out all of the previous day’s gains.
“It’s been fairly common practice for us to receive various M&A proposals from different parties, which we evaluate to varying degrees.”
The U.S. bank, which serves some of the world’s most well-known tech investors, became one of the biggest banks to fail since the global financial crisis of 2008.
The bank, which serves some of the world’s most well-known tech investors, became one of the biggest banks to fail since the global financial crisis of 2008.
