Stocks move into positive territory on report of a potential capital infusion for First Republic, as the health of the U.S. banking sector remains in focus.
U.S. bank stocks reversed course and rose Thursday after a report surfaced of a possible capital infusion in the works for First Republic Bank and Treasury Secretary Janet Yellen praised the strength of the financial system.
The Wall Street Journal reported that Morgan Stanley, JPMorgan Chase & Co. and others are considering ways to provide financial support for First Republic Bank (FRC). Meanwhile, U.S. Treasury Secretary Janet Yellen plans to tell senators today that the U.S. banking system is on solid footing and that Americans can be confident about their deposits, according to prepared testimony for her appearance before the Senate Finance Committee.
Former Treasury Secretary Larry Summers told CNN that the current situation is not another global financial crisis like the one that shook the world after Lehman Brothers collapsed nearly 15 years ago. “I don’t think this is a time for panic or alarm,” Summers said. “This is not 2008, where people needed to be worried about whether they could get their money from the ATM machine. It absolutely is not that.”
