First Republic, Now JP Morgan Chase, Opens all Branches on Monday as Chase Shares Losses with US Taxpayers!
First Republic Bank was closed by regulators, as this is the 2nd largest bank failure in U.S. history. JPMorgan acquired First Republic Bank after rescue efforts failed.
Regulators seized the embattled First Republic Bank on Friday. It was sold to JPMorgan Chase on Sunday, the California Department of Financial Protection and Innovation (DFPI) announced on Monday.
First Republic seized by California regulator, JPMorgan to assume all deposits. First Republic is 2nd largest Bank Failure in US history. FDIC estimates a $13bn loss to deposit insurance fund. First Republic’s 84 offices to reopen on Mon as JPMorgan Chase. https://t.co/QBKxbAj76M pic.twitter.com/zqlPRFcGUg
— Holger Zschaepitz (@Schuldensuehner) May 1, 2023
Earlier this week, the Federal Deposit Insurance Corporation (FDIC), a principal federal regulator of US financial institutions, asked several banks to submit bids for the struggling lender.
According to a statement issued by the Californian regulator, JPMorgan, America’s biggest bank, will “assume all deposits, including all uninsured deposits, and substantially all assets” of First Republic.
“Our government invited us and others to step up, and we did,” Jamie Dimon, JPMorgan’s CEO, said in a statement after announcing the deal.
JP Morgan isn’t eligible to buy it under US law without a government exception since Chase holds more than 10% of the nation’s deposits. Chase is too big to fail, but Janet Yellen says the banks are sound.
FIRST REPUBLIC LOST MORE THAN $100 BILLION IN DEPOSITS IN 1ST QUARTER
The DFPI has appointed the Federal Deposit Insurance Corporation as the receiver of the San Francisco-based bank, the total assets of which amounted to nearly $229.1 billion as of April 13, 2023, while its total deposits totaled some $103.9 billion.
Last week, a massive sell-off wiped out 75% of the bank’s stock value following the disclosure that it had lost more than $100 billion of deposits in the first quarter of the current year.
The seizure and pending sale of First Republic Bank makes it the third US lender to fail after the collapses of Silicon Valley Bank and Signature Bank in March.
In March, leading US financial institutions agreed to a $30 billion injection for the troubled regional lender. Shares of First Republic are down 97% this year.
Reporter Simon Ateba weighed in. “Some might view the seizure and sale of First Republic Bank to JPMorgan as very dubious, almost a scam. Consider these facts: The acquisition involves $92 billion in deposits and approximately $173 billion in loans. Furthermore, the FDIC will share losses with JPMorgan on First Republic’s loans and offer $50 billion in financing. To sum up, there are $92 billion in deposits/assets and $173 billion in loans/losses, with the Biden administration sharing losses and contributing $50 billion in financing. This constitutes a bailout!”
He added that the Biden administration doesn’t have any money. The US taxpayers have money and are on the hook for the bad assets with Chase.
U.S. Treasury, Janet Yellen, says the country’s banking system is “sound and resilient” after regulators seized First Republic Bank and sold it to JPMorgan Chase. Clueless Yellen failed to stave off the crisis.
War, wild spending, Inflation, and BRICS dumping the US dollar do not foster confidence.
“It’s going to be catastrophic”
Former Blackrock acc manager tells Bannon more bank failure to come in the wake of First Republic Bank, SVB, Signature bank, Credit Suisse falling.
The Biden media is fooling folks into believing everything is ok. Many will be caught off guard pic.twitter.com/99ss1DywMK
— Melissa Tate (@TheRightMelissa) April 26, 2023
Second largest Bank failure ever.
First Republic shareholders not pleased, losing another staggering % in pre-market here, with trading halted.
For context, FRC traded as high as $170 as recently as last Summer. pic.twitter.com/MMAhEM4dri
— Steve Cortes (@CortesSteve) May 1, 2023