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How First Republic Bank Received a $30 Billion Lifeline

  • Eleven banks deposit $30 billion to backstop distressed firm
  • Flurry of calls persuades some CEOs wondering, ‘Will it work?’
Bloomberg business news
WATCH: The biggest banks in the US agreed to deposit $30 billion with First Republic Bank. Sally Bakewell reports.Source: Bloomberg
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Jamie Dimon and Janet Yellen were on a call Tuesday, when she floated an idea: What if the nation’s largest lenders deposited billions of dollars into First Republic Bank, the latest firm getting nudged toward the brink by a depositor panic.

Dimon was game — and soon the chief executive officer of JPMorgan Chase & Co. was reaching out to the heads of the next three largest US lenders: Bank of America Corp., Citigroup Inc. and Wells Fargo & Co