by Niket Nishant in Bangalore; Edited by Devika Syamnath
JPMorgan Chase & Co CEO Jamie Dimon is leading talks with the heads of other big banks about further efforts to stabilize First Republic Bank, the Wall Street Journal reported Monday, citing people familiar with the matter.
First Republic shares fell 46% to $12.41 as investors feared the $30 billion deposited by several large US banks with the lender would not be enough to alleviate its woes.
The banks are considering an investment in First Republic, the WSJ report said, adding that the plan could involve turning some or all of the $30 billion of deposits into a capital injection.
JPMorgan and First Republic declined to comment on the report. A First Republic spokesperson pointed to an earlier statement in which the bank said it was “well positioned to manage short-term deposit activity.”
On Sunday, ratings agency S&P Global further downgraded First Republic to junk status, citing lingering risks to the lender’s liquidity.
(This story has not been edited by Business Standard staff and is automatically generated from a syndicated feed.)
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