Why First Republic Bank Collapsed.

First Republic, based in San Francisco, was a big bank with a small-town feel, the ultimate relationship bank. Customers taking out home equity and other lines of credit were encouraged to park those funds in First Republic deposit accounts, according to former First Republic employees. On March 16, a group of large banks agreed to deposit $30 billion in First Republic, a move designed to turn First Republic into a firewall. "I'm willing to bet everybody at the bank has met and had a chat with Jim at some point", said John Rosanelli, who ran First Republic's business serving hedge-fund customers until May 2022. [Extracted from the article]