Representative Patrick McHenry, Chairman of the House Financial Services Committee, has issued a statement on the move by big banks to assist First Republic Bank.
Yesterday, the largest banks in the US as well as two investment banks, announced $30 billion in deposits for First Republic Bank. The banks jointly announced that the move was reflecting their “confidence in the country’s banking system.”
While concerns persist, the announcement helped to calm markets for the moment.
Chairman McHenry shared his thoughts on the support by the banks:
“The shoring up of First Republic Bank by other financial institutions is welcome news. During a troubling week for banks, this should provide further confidence in the U.S. banking system. I’m glad to see this come together without government intervention. This is how our free market should operate. At a time of uncertainty, bank managers and supervisors must be laser-focused on controlling risk to bolster the stability and resiliency of our financial system. Responsible leaders should reinforce the public’s confidence in our financial system, rather than pushing their preferred agenda. The House Financial Services Committee is in contact with regulators and continues to closely monitor the ongoing situation. We will ensure any bad actors are held accountable, while providing transparency for the American people.”