(New York) The New York Stock Exchange rebounded Thursday after American media reported on the possible intervention of large American banks to help the regional establishment First Republic, weakened in recent days.
After losing as much as nearly 1% in early trading, the Dow Jones was up 1.01% around 1:40 p.m. EST.
“We are entitled to a nice rebound, mainly for two reasons. The Swiss central bank calming fears of Credit Suisse having financial problems and reports that a group of financial institutions are talking about depositing 20 billion at First Republic,” explained Peter Cardillo of Spartan Capital.
According to the Financial Times, JPMorgan Chase is trying to rally behind several big names in the market to come to the aid of the Californian First Republic, regularly considered the next weak link in the crisis that has tormented the banking sector for a week.
In addition to JPMorgan Chase, seven financial institutions would be parties to the discussions, namely the largest American banks as well as the regional establishments PNC Financial Services and US Bancorp.
According to the CNBC channel, this group would be ready to deposit 20 billion dollars with First Republic to strengthen its deposits and restore confidence in this little-known brand so far.
After dropping more than 36% in early trading, First Republic stock was thrown into orbit by this news report. The reversal was so brutal that the listing of the title was suspended several times by the NASDAQ.
Around 1:40 p.m. EST, the stock was up 3.63%, after gaining as much as 28%.
