Posted on 05/01/2023 7:24:31 AM PDT by Diana in Wisconsin
Regulators seized troubled First Republic Bank early Monday, making it the second-largest bank failure in U.S. history, and promptly sold all of its deposits and most of its assets to JPMorgan Chase Bank in a bid to head off further banking turmoil.
San Francisco-based First Republic is the third midsize bank to fail in two months. The only larger bank failure was Washington Mutual, which collapsed at the height of the 2008 financial crisis and was also taken over by JPMorgan.
First Republic has struggled since the March collapses of Silicon Valley Bank and Signature Bank and investors and depositors had grown increasingly worried it might not survive because of a high amount of uninsured deposits and exposure to low interest rate loans.
The Federal Deposit Insurance Corporation said early Monday that First Republic Bank’s 84 branches in eight states will reopen as branches of JPMorgan Chase Bank and depositors will have full access to all of their deposits.
Regulators worked through late last week and this weekend to find a way forward before U.S. stock markets opened. They solicited bids for First Republic Bank's assets and once again turned to JPMorgan Chase, the nation's biggest bank, with a reputation as a dealmaker during times of crisis. Treasury officials also enlisted JPMorgan last month to spearhead a $30 billion funding package for First Republic.
“Our government invited us and others to step up, and we did,” said Jamie Dimon, chairman and CEO of JPMorgan Chase.
As of April 13, First Republic had approximately $229 billion in total assets and $104 billion in total deposits, the FDIC said. The FDIC estimated its deposit insurance fund would take a $13 billion hit from taking First Republic into receivership. Its rescue of Silicon Valley Bank cost the fund a record $20 billion.
(Excerpt) Read more at channel3000.com ...
For Dimon and JPMorgan, there may be a sense of déjà vu: Back in 2008, Dimon was the go-to banker for Washington to find private solutions for that banking crisis and JPMorgan acquired both Bear Stearns and Washington Mutual.
I hope we don’t see cascading bank failures ripple through the banking system. Time will tell.
JPMorgan to buy First Republic after regulators seize control
If anyone is a Chase customer, now is a good time to pull your account.
And after the next bank failure and the next bank failure, they’ll still be telling us...’Nothing to see here..’.....
Our Government continues to financially support big businesses like JPM while they implement the destruction of smaller businesses. The Covid lockdowns also allowed the Government to selectively assault not only small businesses, but the Church. So one can only conclude that our Government is pure EVIL.
All by design and all according to the plan. We are so scr*wed.
Next year, we’re going to find out about the sweetheart deals that the regulators cut with JP Morgan and the other purchasing banks. Just like last time, there is a “crisis” so no one scrutinizes the transactions too carefully.
Privatizing profits and socializing loses. Sickening.
It’s funny, I know, but I don’t seem to remember major bank failures during the Trump administration. Do you think it likely that some reporter might bring this up during Brandon’s next news conference?
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