Yellen Declares, “Our Banking System Is Sound,” as Wall Street Props Up First Republic Bank

Wall Street’s largest banks have moved to prop up the ailing San Francisco-based First Republic Bank after the sudden collapse of regional banks Signature and SVB last week sparked fears of a financial meltdown. Bank of America, Citigroup, JPMorgan Chase and Wells Fargo will each make $5 billion in uninsured deposits into First Republic, while seven other Wall Street firms will deposit a further $10 billion. The Federal Reserve reports Wall Street firms have received about $300 billion in emergency lending over the past week roughly half what the Fed loaned banks during the 2008 financial crisis. On Capitol Hill, Treasury Secretary Janet Yellen sought to reassure the Senate Finance Committee over the stability of U.S. financial markets.