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U.S. Banks to Set Aside Reserves After Shoring Up First Republic

Submitted by jhartgen@abi.org on

Banks that contributed the bulk of $30 billion in deposits to First Republic Bank (FRC.N) plan to set aside about $100 million each in first-quarter earnings in case of potential losses, Reuters reported. JPMorgan Chase & Co., Wells Fargo & Co., Citigroup Inc. and Bank of America Corp. deposited $5 billion apiece in uninsured deposits into First Republic in March to shore up confidence in the industry. The four largest U.S. banks were among a group of 11 lenders that bolstered First Republic after its shares plunged during the crisis triggered by the collapse of Silicon Valley Bank and Signature Bank. Lenders typically earmark rainy day funds to prepare for soured loans. Major U.S. banks will begin reporting first-quarter earnings from Friday.