First Republic Bank has been able to meet withdrawal demands on Monday with the help of additional funding from JPMorgan Chasethe bank’s executive chairman told CNBC’s Jim Cramer.
Jim Herbert told Cramer that there was not a massive outflow of deposits at the bank and that business was going on as usual. Cramer said Herbert declined to say specifically how much was withdrawn.
First Republic announced on Sunday that it has received additional liquidity from the Federal Reserve and JPMorgan. First Republic said this brought the bank’s unused liquidity to $70 billion, before accounting for possible use of the bank’s term loan facility, which the Fed created over the weekend.
However, stock monday sunkEnded the day down 61.8%.
Shares of First Republic were under considerable pressure on Monday
Herbert is the founder of First Republic and served as CEO from 1985 to 2022.
The anxiety around the First Republic comes after recent Silicon Valley Bank Failure And signature bank, Like SVB, First Republic caters to wealthy customers and companies whose deposits exceed the limits for federal insurance.