US Banks Urged to Increase Reserves After Shoring Up First Republic

The largest US banks, including JPMorgan Chase, Wells Fargo, Citigroup, and Bank of America, are planning to increase their reserves by about $100 million each, following their deposit of $30 billion to support First Republic Bank last month. The move is in line with accounting rules that require banks to stockpile provisions to cover potential losses for a wide range of assets. The cash infusion was intended to be a vote of confidence in the banking system, but the reserves are an acknowledgment that the decision to park their money with First Republic for at least 120 days wasn’t entirely risk-free.