On Tuesday, local time, J.P. Morgan (J..P.A series of phone calls between Morgan Chase & Co CEO Jamie Dimon, Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen kicked off the $30 billion bailout of First Republic Bank.。

Wall Street's major banks work together to "save" First Republic Bank

Shares of the San Francisco-based First Republic Bank have been sliding since news of the collapse of Silicon Valley Bank last week, and a $70 billion financing announcement by JPMorgan Chase and the Federal Reserve late Sunday failed to ease the pressure this week, with the stock down nearly 62% on Monday。

According to people familiar with the matter, the CEO of the largest U.S. bank, the Federal Reserve Chairman, the Treasury Secretary, began brainstorming and listening to another powerful regulator, concluding that perhaps JPMorgan Chase could give First Republic some deposits？

Such an infusion of funds may help the bank solve a major problem.。Recently, the crazy withdrawal of deposits by customers has put heavy pressure on Silicon Valley banks to continue to operate independently。Last Thursday, customers withdrew $42 billion in just one day, leaving the bank with a negative cash amount and regulators had to seize the bank on Friday.。So the big concern right now is that the same could happen with First Republic。

The day after his conclusion, Dimon told executives at other big banks about the idea of giving a deposit bailout to First Republic Bank。During an event at the Bank Policy Institute, Dimon approached other executives, including Citigroup CEO Jane Fraser.。Subsequently, Citigroup, Bank of America and Wells Fargo pledged $5 billion in uninsured deposits, and JPMorgan Chase agreed to inject $5 billion into their capital.。

The $20 billion injection was supposed to be enough, but the four banks decided to seek more capital from smaller rivals on Wednesday and Thursday。Including Bank of America, Truist Financial, PNC, State Street and Bank of New York Mellon also agreed to deposit $1 billion each.。According to people familiar with the matter, the last to join the injection were Goldman Sachs and Morgan Stanley, who each agreed to deposit $2.5 billion。

"Over the past five days, a lot of deposits have flowed into the big banks," said one person familiar with the matter.。"

 Xiao Mo CEO rescues Wall Street again

The move to rally the major banks to rescue the First Republic puts Dimon at the center of a national banking crisis once again in 15 years。

In 2008, Dimon acted twice to help stabilize the financial system, first when JPMorgan Chase acquired Bear Stearns, a New York investment bank, in March 2008, with $29 billion in federal support, followed by a second acquisition of Seattle-based Washington Mutual in September 2008.。In the case of Washington Mutual, JPMorgan bought its business after regulators took over Seattle Savings Bank。It is still the biggest bank failure in U.S. history.。

With these two historic deals, JPMorgan became the largest coastal bank in the United States and gave it a stronger presence on Wall Street.。But in contrast, these acquisitions have also saddled Xiaomo with years of legal and regulatory challenges.。Dimon has said he wouldn't be in the position to buy Bear Stearns for these reasons if he could do it all over again.。

Shares in First Republic Bank were boosted by a $30 billion capital injection announced on Thursday, and the stock closed the day up 10%。Powell, Yellen and Grunberg said in a joint statement that "this approach of a direct hand from a group of large banks is most welcome because it demonstrates the resilience of the banking system."。"

As part of the deal, JPMorgan didn't get any special arrangements, according to a person familiar with the matter。"These deposits will be treated in exactly the same way as any uninsured deposit," the person said.。Deposits must stay at First Republic Bank for 120 days and earn interest at the same rate as current depositors。