NEW YORK (Reuters) – Major bank chief executives are gathering in Washington for a two-day scheduled meeting starting on Tuesday, with the future of First Republic Bank to be discussed, sources familiar with the matter said.
The quarterly meeting of the Financial Services Forum will include JPMorgan Chase & Co.’s Jamie Dimon and Bank of America Corp’s Brian Moynihan, the sources said.
Large U.S. banks injected $30 billion in deposits into First Republic Bank on Thursday, swooping in to rescue the lender caught up in a widening crisis triggered by the collapse of two other mid-sized U.S. lenders over the past week.
First Republic Bank is among the banks that have been speaking to peers and investment firms about potential deals in the wake of U.S. regulators taking over Silicon Valley Bank and Signature Bank this month amid a flight of depositors, sources have said.
Two sources familiar with the matter previously said that all options are on the table for First Republic, which could include a sale or equity infusion.
JPMorgan Chase & Co is advising First Republic on its options to raise capital from investors, a source familiar with the situation previously said.
One source familiar with the situation said that the banks were aiming to work out details for what needs to be done for First Republic within the coming 24 hours.
News of the meeting was earlier reported by the Financial Times.
Shares of First Republic jumped 55% on Tuesday.
In a boost to sentiment, U.S. Treasury Secretary Janet Yellen said that while the U.S. banking system is stabilizing, further steps to protect bank depositors may be warranted if smaller institutions suffer deposit runs.
(Reporting by Nupur Anand, Lananh Nguyen, Tatiana Bautzer and Saeed Azhar in New York; editing by Megan Davies and Paul Simao; ((Lananh.Nguyen@thomsonreuters.com; +1 (646) 696 4829)
