Finance
First Republic’s $30 Billion Rescue Fails to Soothe Investor Fear
- Deposit injection is a ‘temporary solution,’ analysts say
- Policymakers face tough choices if rescue doesn’t succeed
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First Republic Bank staved off a potential collapse after a group of bigger financial firms agreed to park a combined $30 billion in deposits with the lender. But the cash injection is only a short-term solution, and investors are unsatisfied.
The San Francisco-based company will still need to move quickly to find a way to remain independent, or strike a deal for a takeover. The deal with the 11 lenders including Bank of America Corp., JPMorgan Chase & Co. Citigroup Inc. and Wells Fargo & Co. includes deposits with an initial term of 120 days.