JPMorgan Chase Co CEO Jamie Dimon is leading talks with the chiefs of other big banks about new efforts to stabilize First Republic Bank, according to the Wall Street Journal on Monday, citing people familiar with the matter.
Shares of First Republic fell by 46% to $12.41 as investors fretted that the $30 billion deposited by several big U.S. banks wouldn't be enough to ease its troubles.
The banks are considering an investment into First Republic, according to the report, adding that the plan could involve converting some or all of the $30 billion of deposits into a capital infusion.
JPMorgan and First Republic didn't want to comment on the report. A First Republic spokesman said that the bank was well-positioned to manage short-term deposit activity. On Sunday, ratings agency S&P Global downgraded First Republic deeper into junk status, citing persistent risks to the lender's liquidity.