This is a welcome sign of confidence in the strength of the banking system

U.S. stocks closed higher on Thursday following the news First Republic Bank is actively considering a financial lifeline amid its own crisis.

Some of America’s largest banks are reportedly in talks to inject billions of dollars into the struggling San Francisco lender.

This would give it additional financial firepower to meet customer withdrawals and boost confidence.

The big banks involved in providing the lifeline include JPMorgan, Bank of America, Wells Fargo, Citigroup and Truist.

The bailout is expected to total roughly $30 billion.

U.S. officials appear to be pleased with the prospect of an industry-led rescue of First Republic.

Many say the fact America’s largest banks are discussing a lifeline for the San Francisco-based lender is a welcome sign of confidence in the strength of the banking system.