Citigroup CEO, Jane Fraser, has expressed her confidence in the strength of the US banking system, despite recent turbulence in financial markets and the bankruptcy of some banks. In a statement, Fraser affirmed that Citigroup, the fourth-largest US bank, has no interest in acquiring US regional bank First Republic Bank (FRB), despite being one of 11 Wall Street banks that funded FRB last week.
On March 16, the 11 banks announced a combined $30 billion injection to add liquidity to FRBs, with Bank of America, Wells Fargo, Citigroup, and JPMorgan depositing $5 billion each, while Goldman Sachs and Morgan Stanley deposited $2.5 billion each. True East Financial, PNC, US Bankcorp, State Street, and Bank of New York Mellon also deposited $1 billion each.
In a joint statement, the banks said: “The fact that the major banks in the United States are united in injecting a total of $30 billion this time reflects our confidence in FRBs and banks of all sizes. It also reflects our commitment to helping banks continue to serve their customers.”
Despite this support, Fraser confirmed that Citigroup has no plans to acquire FRB. The move comes as Citigroup focuses on its own growth strategy and strengthens its operations in the Asia-Pacific region.