The Wall Street Journal reported on Monday that JPMorgan Chase Co. Chief Executive Jamie Dimon is working to raise additional capital for First Republic Bank.
JPMorgan Chase JPM, CEO Dimon is leading banks in a new campaign to shore up First Republic Bank after he helped lead a $30 billion placement in deposits with First Republic from 11 banks.
The stock FRC of First Republic was stopped for trade after losing 37% of its value on Monday. The stock was down 31% in the early afternoon, with the stock down about 31% in the early afternoon.
The WSJ report, which cited people familiar with the situation, said that discussions are under way to convert $30 billion in deposits from 11 banks into a capital raise.
Over the weekend, S&P downgraded the company's debt to B in the debt rating firm's second First Republic cut in less than a week.
The WSJ report said that the banks may make an investment in First Republic as part of a capital injection.
A bank spokeswoman did not reply to an email from MarketWatch. A JPMorgan spokesman wouldn't say anything.
The First Republic stock lost more than 80% of its value this month to record lows, as investors took note of a flight of deposits from the bank.
After the collapse of Silicon Valley Bank, Signature Bank, and Silvergate Bank in the past couple of weeks, First Republic has been swept up in concerns about further bank failures due to exposure to wealthy clients and upper management people in Silicon Valley.
The bank has been booking billions of dollars in lost deposits, but said the flight had slowed late last week.
First Republic has a large percentage of uninsured deposits, which are more vulnerable to being withdrawn at short notice.
S. bank stocks went up on FDIC moves and hopes of a pause in interest rates.