First Republic Bank (FRCB)

[powerbattles]

The question we need to ask. Why the big banks stood to lose their money if First Republic failed? As of March 15, 2023, the bank's cash position stood at approximately $34 billion, excluding the $30 billion in uninsured deposits from these banks, which include Citigroup, Wells Fargo, Goldman Sachs, Morgan Stanley, Bank of New York Mellon, PNC Bank, State Street, Truist, and U.S. Bank. Furthermore, First Republic announced fresh funding from the Federal Reserve and JPMorgan Chase. First Republic now has $70 billion in unused liquidity, cash it can use to respond to potential customer withdrawals. According to a statement made by Jim Herbert, First Republic's founder and executive chairman, and CEO Mike Roffler on Sunday, the bank's capital and liquidity positions are exceptionally strong. They further noted that First Republic's capital remains well above the regulatory threshold for well-capitalized banks. The bank's founders and executive leadership have also emphasized the bank's exceptionally strong capital and liquidity positions, which should further reassure investors and clients.
IMHO; This substantial infusion of cash puts FRC in a strong position to weather any challenges that may arise in the future.