A group of 11 major banks have provided $30bn (£24.7bn) in cash in an attempt to end a crisis of confidence surrounding another major US bank.
First Republic, a regional lender, was among those to have seen its share price collapse this week amid sector-wide balance sheet scrutiny prompted by the collapse of Silicon Valley Bank (SVB) last Friday.
The rescue funds, provided by peers including JPMorgan, Citi, Bank of America and Wells Fargo, were handed over hours after Switzerland’s second-largest lender was handed a €50bn (£44.5bn) lifeline by the country’s central bank.
Credit Suisse had come under the same kind of share price assault as First Republic, largely the result of fears that rising interest rates imposed by central banks to tackle inflation had damaged their balance sheets.
Unlike with SVB last week, when the US government effectively took control, it was reported by the Reuters news agency that US Treasury secretary Janet Yellen had discussed a bank-led rescue with JPMorgan’s boss as early as Tuesday.
Ms Yellen, a former chair of the US Federal Reserve, was understood to have helped hatch the plan which was designed to be a show of support and resilience in the face of concerns of a new banking crisis.
A joint statement by the banks involved in the rescue said their time-limited deposits demonstrated “their overall commitment to helping banks serve their customers and communities.”
First Republic responded: “This support from America’s largest banks reflects confidence in First Republic and its ability to continue to provide unwavering exceptional service to its clients and communities.”
Its share price recovered from record lows earlier in the day to close almost 10% up.
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The Swiss National Bank’s loans to Credit Suisse helped it gain 19% on the day following the bloodbath for values on Thursday.
It prioritised its battle against inflation over the market turmoil in a move that sent a clear public signal it was not overly concerned by the crisis of confidence hitting banks.
Four people have been charged with plotting New Year’s Eve bomb attacks in California.
Federal authorities in the US said the four are allegedly part of an extremist group which is suspected of planning the attacks in southern California.
The plot consisted of planting explosive devices at five locations targeting two US companies at midnight on New Year’s Eve in the Los Angeles area.
The suspects were arrested last week in Lucerne Valley, a desert city east of Los Angeles.
Image: Photos of suspects of the terror plot are shown on a screen during a press conference. Pic: AP
They are said to be members of an offshoot of a pro-Palestinian, anti-government and anti-capitalist group dubbed the Turtle Island Liberation Front, the complaint said.
As well as the alleged plan against the two companies, the group also planned to target Immigration and Customs Enforcement (ICE) agents and vehicles, attorney general Pam Bondi said.
The four defendants named in the complaint are Audrey Illeene Carroll, Zachary Aaron Page, Dante Gaffield, and Tina Lai.
All four are from the Los Angeles area, according to first assistant US attorney Bill Essayli.
The alleged plot
According to a sworn statement by the complaint, Carroll showed an eight-page handwritten document to a paid confidential source in November, which described a bomb plot.
The document was titled “Operation Midnight”.
Essayli said one of the suspects created a detailed plan that “included step-by-step instructions to build IEDs (improvised explosive device)… and listed multiple targets across Orange County and Los Angeles.”
Image: FBI assistant director in charge Akil Davis speaks at a press briefing on the incident. Pic: AP
Carroll and Page are then alleged to have recruited the other two defendants to help them carry out the plan which included acquiring bomb-making materials before constructing and performing test detonations.
Under the plan, the defendants would supposedly have travelled to a remote location in the Mojave Desert on the 12 December to construct and detonate their test explosive devices, the sworn statement alleges.
Evidence photos included in the court documents show a desert campsite with what investigators said were bomb-making materials strewn across plastic folding tables.
The FBI said agents intervened before the defendants could complete their work to assemble a functional explosive device.
This breaking news story is being updated and more details will be published shortly.
US director and actor Rob Reiner and his wife have been found dead at their home in Los Angeles, Sky News’s US partner NBC News has reported.
A source close to Reiner told the outlet he and his wife, Michele Singer Reiner, apparently died of stab wounds.
A family member is being questioned by investigators, a law enforcement official told the AP news agency.
A 78-year-old man and a 68-year-old woman were found dead inside the property, a Los Angeles Fire Department official said. Reiner turned 78 in March.
Detectives from the LAPD Robbery Homicide Division have been assigned to the case, the force said in a statement.
‘Apparent homicide’
LAPD Captain Mike Bland said they were investigating an “apparent homicide”.
Reports said there was a large police presence at the house.
Reiner starred in Sleepless In Seattle and The Wolf Of Wall Street and directed This Is Spinal Tap, The Princess Bride, When Harry Met Sally and A Few Good Men.
Los Angeles mayor Karen Bass said Reiner’s death was a devastating loss for the city.
“Rob Reiner’s contributions reverberate throughout American culture and society, and he has improved countless lives through his creative work and advocacy fighting for social and economic justice,” she said.
“An acclaimed actor, director, producer, writer, and engaged political activist, he always used his gifts in service of others.”
‘Creative, funny, and beloved’
Former House speaker Nancy Pelosi said: “It’s hard to think of anyone more remarkable and excellent in every field and endeavour they pursued. Rob was creative, funny, and beloved. And in all of their endeavours, Michelle was his indispensable partner, intellectual resource, and loving wife.
“Personally, Rob cared deeply about people and demonstrated that in his civic activities – whether by supporting the First 5 initiative or fighting against Prop 8 in California. Civically, he was a champion for the First Amendment and the creative rights of artists. And professionally, he was an iconic figure in film who made us laugh, cry and think with the movies he created.”
Image: Reiner and his wife Michele Singer Reiner. Pic: AP
Actress Kathy Bates told NBC News: “I’m horrified hearing this terrible news. Absolutely devastated. I loved Rob. He was brilliant and kind, a man who made films of every genre to challenge himself as an artist. He also fought courageously for his political beliefs. He changed the course of my life. Michelle was a gifted photographer. She shot my beautiful photos for the Misery campaign. My heart breaks for them both. My thoughts are with their family.”
Reiner was married to Michele Singer Reiner since 1989, after they met while he was directing When Harry Met Sally. They have three children together.
Michele used to work as a photographer and took the photo of Donald Trump that appears on the cover of his book Trump: The Art Of The Deal.
This breaking news story is being updated and more details will be published shortly.