(ConcernedPatriot.com) – Following the collapse of First Republic Bank, the third significant bank failure in America in the previous two months, JP Morgan Chase is preparing to take over the failing institution.
On Monday morning, the Federal Deposit Insurance Corporation (FDIC), the nation’s banking watchdog, declared that the San Francisco-based bank had failed after customers withdrew about $100 billion in deposits over the previous few days as First Republic’s stock price plummeted.
NEW — First Republic Bank Has Been Seized by Regulators and Sold to JPMorgan Chase
“First Republic will go down as the second largest bank failure in U.S. history” pic.twitter.com/UWlp4IbzuD
— Chief Nerd (@TheChiefNerd) May 1, 2023
JP Morgan will “assume all of the deposits and substantially all of the assets of First Republic Bank,” including the 84 offices formerly run by First Republic throughout eight states, which will open as branches of JP Morgan Chase on Monday. This is part of a deal was arranged by the government.”
The FDIC estimates that as of April 13th, First Republic Bank had estimated total assets of $229.1 billion and total deposits of $103.9 billion, making it the second-largest bank failure in American history.
US GOV SEIZES FIRST REPUBLIC BANK, 2nd LARGEST COLLAPSE In US History, Banking Crisis GETTING BAD pic.twitter.com/T9RoZZBmqr
— Are We Living in the Last Days (@AWLITLD1) May 1, 2023
According to the banking regulator, the FDIC will continue to protect all deposits, and clients do not need to take any additional steps to maintain their deposit insurance.
Due to a loss-sharing agreement with JP Morgan Chase, the First Republic Bank’s failure is expected to cost the Deposit Insurance Fund about $13 billion.
On Monday, Jamie Dimon, the CEO of JP Morgan Chase, stated that the government had “invited” the large bank to “step up, and we did.”
According to Dimon, JP Morgan Chase would “modestly benefit” from the acquisition, and the assets would be “complementary” to its current holdings.
The demise of the San Francisco-based bank is sure to become a political issue, with Republicans likely to portray it as yet another victim of President Joe Biden’s weak economy and his terrible foreign and economic policies, which gave rise to widespread “Bidenflation.”
Large bond portfolios held by some banks were severely devalued when the Federal Reserve intervened to raise rates to tame inflation because the banks had purchased the bonds during periods of lower interest rates.
Numerous banks have suffered due to the inflationary cycle and rate increases that followed; similar problems befell the now-defunct Silicon Valley Bank, which became the biggest bank failure since the 2008 global financial crisis in March.
“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
Others have previously criticized SVB for its insistence on pursuing leftist Environmental, Social, and Governance (ESG) policies in its operations, emphasizing diversity, inclusion, and equity (DIE) rather than sound business practices.
This criticism extends beyond poor market predictions and rate increases. The financial crisis is worsening, and the American people must prepare.
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