First Republic Bank gets $30B from big lenders

By COLE LAUTERBACH

CENTER SQUARE

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(The Center Square) – Without the help of taxpayer funds, embattled regional lender First Republic Bank saw an injection of money Thursday from the nation’s largest banks – likely saving the San Francisco-based bank from insolvency.

A joint statement from a quartet of Secretary of the Treasury Janet L. Yellen, Federal Reserve Board Chair Jerome H. Powell, Federal Deposit Insurance Corporation Chairman Martin J. Gruenberg, and Acting Comptroller of the Currency Michael J. Hsu, confirmed the transfer.

“Today, 11 banks announced $30 billion in deposits into First Republic Bank,” they said. “This show of support by a group of large banks is most welcome, and demonstrates the resilience of the banking system.”

As first reported by The Wall Street Journal, JPMorgan Chase, Citigroup, Bank of America and Wells Fargo will send $5 billion to First Republic, which has a branch at 1200 State St. in Santa Barbara. Sending smaller amounts are Morgan Stanley and Goldman Sachs, U.S. Bancorp, PNC Financial Services Group and Truist Financial, the paper said.

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The Main-Begg Farmhouse is open from 11 a.m. to 2 p.m. on the second Saturday of each month. It’s located at 5001 Hollister Ave. in the Goleta Valley. Docent-led house and garden tours take place at 11:30 a.m., 12:30 p.m. and 1:30 p.m. Reservations are required. Admission is free, but donations are welcome. For more information, including details on the original water cistern, property history and ongoing activities, go to mainbeggfarmhouse.org.

For more about the Pearl Chase Society, see www. pearlchasesociety.org.

By KATHERINE ZEHNDER NEWS-PRESS STAFF WRITER

The Pearl Chase Society is continuing its efforts to preserve historic architecture, and this time the beneficiary is the MainBegg Farmhouse in the Goleta Valley.

Emma Brinkman, a member of the Pearl Chase Society board, presented a grant check for $7,450 Wednesday afternoon to the treasurer and board members of the Main-Begg Farmhouse on behalf of the Pearl Chase Society. The money will go toward restoration of the porch at the historic landmark, which is at 5001 Hollister Ave.

“We have added some new board members, and there is a renewed energy to the board,”

Ms. Brinkman told the NewsPress. “We are going to see much more outreach to the community coming from the society.

“Other projects funded by the society include Cabrillo Pavilion renovation for the easterly observation deck,” she said. “The society also funded partial grants for the stegosaurus wall at the Santa Barbara Museum of Natural History and the arch at the courthouse (in Santa Barbara).”

The porch at the Main-Begg Farmhouse was in need of

Free Republic’s stock price plummeted Thursday on news of the bank seeking a sale but the injection of funds gave investors confidence, bouncing the bank’s price back up to more than $34 when markets closed at 4 p.m. Eastern. Credit rating agencies lowered the bank’s bond ratings to speculative, or “junk” status shortly after.

A spokesman for the bank wasn’t immediately available to comment on the infusion of cash Thursday afternoon.

The regional bank’s scare is the latest in a handful of midsize lenders nearing or falling into insolvency, leaving account holders with more than the FDICinsured $250,000 fearful they’d lose those funds after a run on the bank.

Tech-centric Silicon Valley Bank fell into insolvency last week after being forced into heavy losses to maintain liquidity when customers began pulling money from the bank. The FDIC took over the lender, announcing it would take additional steps to make uninsured funds whole.

New York City’s Signature Bank met the same fate last Sunday. The FDIC was named receiver and has transferred the bank’s holdings to Signature Bridge Bank, N.A.