JPMorgan Chase Bank will assume all the deposits of First Republic Bank, including all uninsured deposits and nearly all of First Republic’s assets, state regulators said Monday.
San Francisco-based First Republic Bank was closed Monday by the California Department of Financial Protection and Innovation.
Less than two months ago, Santa Clara-based Silicon Valley Bank collapsed. The United States Federal Reserve Board took some of the blame for Silicon Valley Bank’s failure, the board said Friday. The board has not said whether it is partly to blame for First Republic’s collapse.
Like Silicon Valley Bank, First Republic’s failure was due to a bank run, albeit a slow one, said Filippo Rebessi, professor and chair of the economics department at California State University East Bay. Those who are planning to open savings accounts should consider looking into the differences of child versus adult ISA accounts.
A few phony reasons for why these banks are going downhill but the truth is they make dumb woke investments that go down the tubes.
Hmm . . . . this time lighting fast.
Guess it took longer for biden administration to arrange thing so mega DEM campaign contributor customers of silicon valley bank wouldn’t suffer any losses.
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Nice to know who always gets taken care of first while,
American citizens come LAST
Any customer still leaving any of their money in that bank are certainly not the brightest bulb on the tree.
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Incorrect.
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I was just talking to a friend who has a friend who worked there. All the stock he got for retirement is el gonno. Ugh. I wonder if the big cheeses took care of themselves?
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For retirement? Ha!
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Your friend’s friend wasn’t very smart. There is a saying that retirement funds should never be invested in a single stock that you cannot afford to lose. Meaning, “don’t keep your eggs in one basket”.
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The only free lunch (lower risk) in the stock market is diversification thru mutual funds, indexes, and cash.
An individual stock is like a slot machine… “OK if ya win, OK if ya lose.”
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Hail Jamie Dimon!
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The Biden administration blame Trump for the Silicon Valley Bank failure as they claim he reduced regulatory requirements.
Currently, a bank holding more than 10% of US Deposits is not allowed to make bank acquisitions. J.P. Morgan Chase held 16% as of February 2023. This weekend, regulators waived that limit to broker this bailout of First Republic. Gee, I wonder who blessed this reduction in regulatory requirement?
Now existing depositors have been introduced to additional risk. No crisis was averted. They simply kicked the can down the road. This will be paid for at a later date.
Nobody earned a victory lap here, but they’ll take one. Worse yet, citizens will be assured everything is fine, there is no crisis, and none of your money is at risk. This won’t cost you one penny etc. etc. etc.
Mutual Fund, Pension, and Family Office Managers with financial services exposure will be watching J.P. Morgan Chase very carefully. With so much as a hiccup they will divest and individual investors will crushed. But remember, this won’t cost you one penny, etc. etc. etc.
The market assumption (and probably correct one) is that Chase is one of the too-big-to-fail banks, and the government won’t allow it to fail. It is seen as safe because the government can’t afford for it to fail, as it would almost certainly start the dominoes on the whole economy. This is a shining example of crony capitalism, and honestly, fascism. Government and corporations, tied at the hip, with the little guy a distant afterthought.
The conspiracy theory that is not at all far fetched is, the banks all start to fail, and thr government steps in with digital Fedcoin as the safety net. FDIC has run out of funds, and all the banks are failing. Just sign up at fedcoin dot gov or similar, and your funds will be “transfered” to your new government account.
Congratulations, they can now track everything you buy, and restrict your purchases as they see fit. No more gun purchases if can get away with it, carbon limits on travel spending, etc.
Might be a little far fetched, but after covid, anything is possible. And you can be sure there are people in power that would love this.
In the 2007-8 financial crisis, individuals such as Linsey Graham and Alan Greenspan suggested nationalizing many or all of the banks, so this is not far fetched. Also remember the lesson learned next door in Canada when they froze the bank accounts of protestors so even ATMs would not give them their own money. Things are falling into place to really expand the power and control of government.
You know the saying – the difference between conspiracy theory and reality is about 6-12 months.
WAGE SLAVE,
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It was also Vice President Dick Cheney that wanted a database of all purchases made by Americans after 9/11.
The Truth is…
Upper management suppresses internal audits for large deposits Re. money laundering. The upper management gives large loans to these types of depositors. Upper management then receives big monetary bonuses for selling large loans. Looks wonderful but you have to dive deeper to understand the greed-money-and putting balance of good depositors money at risk.
Upper management V.P./Legal Counsel was making $1,500,000+ PER YEAR.
Where are the Federal FDIC Audits to pick these illegal acts up, and confiscate their management’s assets for paying back the taxpayers who end up funding the wreck of a bank???
We should be irate and demand heads roll…