We advised the 11 banks in making $30B of uninsured deposits into First Republic to help stabilize the U.S. financial system

Davis Polk advised 11 of the largest U.S. banks in making $30 billion in uninsured deposits into First Republic Bank. Bank of America, Citigroup, JPMorgan Chase and Wells Fargo each made a $5 billion deposit. Goldman Sachs and Morgan Stanley each made a deposit of $2.5 billion, and BNY Mellon, PNC Bank, State Street, Truist and U.S. Bank each made a deposit of $1 billion.

In their press release, the banks said this action “reflects their confidence in First Republic and in banks of all sizes, and it demonstrates their overall commitment to helping banks serve their customers and communities.” The joint effort was designed to stem the large outflow of uninsured deposits at First Republic Bank and various other banks following the failures of Silicon Valley Bank and Signature Bank.

In a joint statement, the U.S. Department of the Treasury, the Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency said: “This show of support by a group of large banks is most welcome, and demonstrates the resilience of the banking system.”  

The Davis Polk team was led by Randall D. Guynn, Chair of the firm’s Financial Institutions practice, Donald S. Bernstein, Special Counsel to the firm’s Restructuring practice, Financial Institutions partners Margaret E. Tahyar, Luigi L. De Ghenghi and Eric McLaughlin and Finance partner James Florack. The team included Financial Institutions counsel Ledina Gocaj and associates Andrew Rohrkemper and Zachary T. Stone. Members of the Davis Polk team are based in the New York and Washington DC offices.