Major banks to give $30 billion in bailout for First Republic Bank amid industry turmoil

A group of major U.S. banks have reached an agreement to help First Republic Bank stave off collapse by making major deposits to keep them afloat amid industry turmoil.

A group of 11 banks, among them Goldman Sachs, Wells Fargo, Morgan Stanley, JP Morgan Chase, Citigroup, and Bank of America, will deposit a total of $30 billion, according to Bloomberg. 

First Republic appears to have narrowly averted a total collapse after its stock fell by roughly two-thirds in the wake of the failures of Silicon Valley Bank and Signature Bank. Despite federal promises of intervention and support from the Federal Deposit Insurance Corporation (FDIC), the industry remains tumultuous, with several foreign banks such as Credit Suisse finding themselves in dire financial straits.

An estimated 68% of First Republic's deposits are uninsured by the FDIC, The Hill reported.

The bloc of banks asserted that the arrangement reflected their confidence the U.S. financial system would weather the chaos, according to the outlet.

"The actions of America’s largest banks reflect their confidence in the country’s banking system. Together, we are deploying our financial strength and liquidity into the larger system, where it is needed the most," they said.

First Republic, for its part, celebrated the news, saying "[t]his show of support by a group of large banks is most welcome, and demonstrates the resilience of the banking system."

Ben Whedon is an editor and reporter for Just the News. Follow him on Twitter.