JPMorgan CEO Jamie Dimon is reportedly leading the charge to save First Republic Bank and restore confidence in the bank.
First Republic is facing its worst crisis in 15 years on the heels of three other banks collapsing. Silicon Valley Bank collapsed in early March, and Signature Bank followed shortly after. Meanwhile, Credit Suisse’s freewheeling ways finally caught up with it, leading to its sale to rival UBS.
According to The Wall Street Journal, Dimon is leading a coalition of banks that are trying to keep First Republic from following SVB and Signature. Dimon helped orchestrate eleven banks in depositing $30 billion into First Republic in an effort to restore confidence.
The assisting banks have yet to rule out converting the deposit into a straight cash infusion if necessary.
Either way, the lengths Dimon and his fellow bankers are going to demonstrate the fragility of the current economic situation.