WSJ:
Regulators seized First Republic Bank FRC -43.30%decrease; red down pointing triangle and struck a deal to sell the bulk of its operations to JPMorgan Chase JPM 2.05%increase; green up pointing triangle & Co., heading off a chaotic collapse that threatened to reignite the recent banking crisis.
JPMorgan said it will assume all of First Republic’s $92 billion in deposits—insured and uninsured. It is also buying most of the bank’s assets, including about $173 billion in loans and $30 billion in securities. MORE
Cavuto comes back and calls it a Happy Ending
Fox Blondes ham it up for the Money Grubbers
Very interesting. Whoms sucking whoms?
HA HA
CHARADES YOU ARE
In essences, FDIC avoids backing all deposits like it did with Silicon Valley, while JPMorgan receives all the viable assets of First Republic while putting FDIC on the hook for loses. To do this they all ignore the laws on the books about bailouts and we all dance on the knife edge of massive bank failures for a little while longer.
Our financial system is a combination Janga pile and house of cards waiting for another big bank failure to bring the whole thing crashing down with the regulators sitting on their hands watching as the too big to fail banks take their piece of the pile.
If China wants to pitch this country back into the great depression it need only sell a portion of its holding of US debt it’s accumulated over the decade. Given the federal government’s out of control spending and the politician’s willingness to play chicken with the debt ceiling, there may be little incentive left for the Chinese to hold our debt.
To the F’ing BEDROCK
Not to worry, Jamie Dimon, CEO of JP Morgan says everything is fine.