Several US banks are drawing up a bailout package of at least $20 billion for First Republic Bank, sources told The Associated Press on Thursday.
The move comes as San Francisco-based First Republic has suffered a loss of investment and fears are growing that the midsize bank will be the next to collapse after Silicon Valley Bank and Signature Bank.
Sources familiar with the matter said that JPMorgan Chase, Citigroup, Wells Fargo and Goldman Sachs are part of the group of banks putting together the package. It will probably be $20 billion in deposits and capital for First Republic, but could be as high as $30 billion.
The sources spoke on condition of anonymity because they were just putting together the package.
A First Republic spokesman declined to comment.
First Republic shares faltered as customers began withdrawing their deposits. But they rose more than 3% as reports of the bailout package surfaced.
A week ago the Silicon Valley Bank collapsed, the second largest bank failure in history after Washington Mutual in 2008.
The closure of Silicon Valley Bank on Friday and that of Signature Bank of New York two days later brought back unpleasant memories of the financial crisis that plunged the United States into the Great Recession of 2007-2009.
