#bankfailure

Now we have a tangible example of a small town bank - the kind that ole Dave told you not to worry about and not to be a "stupid butt" over - having a banking crisis and being seized by regulators. Who looks a 🤡 now, I wonder.

Ing Source: https://media.npr.org/assets/img/2023/04/28/gettyimages-1485497904-64acf97cd05a92eea103ec38d65c4f56f0b5d8d7-s800-c85.webp JPMorgan Chase, one of the largest banks in the United States, announced on Monday that it will be purchasing the troubled First Republic Bank's deposits along with a significant portion of its assets and liabilities. The California Department of Financial Protection and Innovation disclosed that First Republic Bank had been closed and put into receivership by the Federal Deposit Insurance Corporation (FDIC) before being sold to JPMorgan. This is the third time that the U.S. government has taken control of a U.S. lender this year. The acquisition includes the assumption of about $92 billion of deposits and the acquisition of most of First Republic Bank's assets, including approximately $173 billion of loans and around $30 billion of securities. Rebranding of the 84 branches of First Republic Bank will take place, and they will open as usual on Monday. JPMorgan Chase CEO Jamie Dimon said that the bank's bid was made in such a way that it would minimize costs to the FDIC's Deposit Insurance Fund. The FDIC estimates that this will cost the fund about $13 billion. The U.S. Treasury Department was pleased that this issue was resolved with the least amount of cost to the Deposit Insurance Fund. First Republic is the biggest U.S. bank to fail this year, and it's the third. Federal regulators acted in March to protect customers of Silicon Valley Bank and Signature Bank, taking unprecedented action to insure all deposits at the two banks, even those exceeding the FDIC's $250,000 threshold for insurance. After Silicon Valley Bank and Signature Bank were taken into receivership, the FDIC solicited bids to buy the two lenders. New York Community Bank's subsidiary bought most of Signature Bank, and Silicon Valley Bank was acquired by First Citizens Bank. Recent earnings reports suggest that deposits have stabilized, and more bank runs didn't come to pass. However, First Republic was the exception. That deposit pressure was worse than expected, according to Jared Shaw, a bank analyst at Wells Fargo Securities, and First Republic shares tumbled last week. The San Francisco-based bank, which mostly catered to wealthy clients and offered home mortgages and commercial loans, announced on Monday that it had lost $100 billion worth of deposits during the first three months of the year. Trading of the bank's shares became so volatile that the New York Stock Exchange halted trading several dozen times last week. Despite receiving a $30 billion deposit from 11 of the country's largest banks, led by JPMorgan, First Republic failed to convince Wall Street, and customers continued to withdraw their money. The bank was running out of options and attempted to sell itself, but it found few takers. The government-led rescue was the only available option. The FDIC's actions come as regulators themselves have been under scrutiny about whether they could have done more to prevent the failures of Silicon Valley Bank and Signature Bank. On Friday, the Federal Reserve and the FDIC issued reports on what led to the collapses of those two lenders. They blamed management while admitting they could have done more to oversee the banks. In conclusion, the acquisition of First Republic Bank by JPMorgan Chase is a significant development in the banking industry. Despite the turbulence and instability in the banking sector, JPMorgan's move to purchase First Republic's assets and liabilities is a step towards creating a more sound and resilient banking system. Read the full article

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The complete Albert Schweitzer quote is: "Man has lost the capacity to foresee and to forestall, he will end by destroying the world."

Silicon Valley Bank is the second-largest US bank failure in history The closure of Silicon Valley Bank (SVB) today marked the second-largest US bank failure in history.Read more... https://qz.com/silicon-valley-bank-is-the-second-largest-us-bank-failu-1850214350