Yellen tries to assuage concerns of financial collapse as banks inject $30 mil into First Republic

by ian

The U.S. banking sector continues to face major issues.

Large U.S. banks injected $30 billion into First Republic Bank yesterday. First Republican was caught up in a widening crisis triggered by the collapse of two other banks over the past week.

Meanwhile U.S. Treasury Secretary Janet Yellen said the country’s banking system is stable.

But banking stocks globally have been battered since Silicon Valley Bank collapsed last week due to bond-related losses that piled up when interest rates surged last year.

Within days, ensuing market turmoil ensnared Swiss lender Credit Suisse, forcing it to borrow up to $54 billion from Switzerland’s central bank.

By yesterday afternoon, 11 big banks led the effort to shore up support for First Republic, which included the likes of Wells Fargo, JP Morgan Chase, and Goldman Sachs.