Posted on 04/28/2023 3:39:21 PM PDT by dynachrome
he U.S. Federal Deposit Insurance Corporation (FDIC) is preparing to place First Republic Bank (FRC.N) under receivership imminently, a person familiar with the matter said on Friday, sending shares of the lender down nearly 50% in extended trading.
The U.S. banking regulator decided the troubled regional lender's position has deteriorated and there is no more time to pursue a rescue through the private sector, the source told Reuters, requesting anonymity because the matter is confidential.
(Excerpt) Read more at reuters.com ...
Cramer hits again.
I wonder how many people he has bankrupted.
Well, the big money. Or, out of the stock. But small depositors will be fine. And ultimately the FDIC will sell it to another bank. Maybe another regional that would expand into its territory.
Vote democrat.
Destroy America.
There may not be anything to buy. Some loans are interest only, and other nonsense excuses posing as assets.
What did he say?
I thought it said “Free” Republic and said “what the hell?”
Well, they buy the deposits/depositors who are still there, and take over location leases which are already built to be bank branches. There is some value to a bank that can afford to expand into its territory. They just change the signs. But you’re right - it might be sold for $1 since all of that (leases to assume, signs to replace) could be seen as a liability/expense. Or it might be given away with some other assurances e.g. that the big wall street banks will keep the $30 billion they put in on deposit in the new bank.
Though I am hard pressed to think of a regional bank that would want to come into this market.
Cramer promoted Silicon Valley Bank, did he say something about First Republic?
The finance board on this yesterday was nuts.
Damn near enticing people to buy it saying govt coming to the rescue.
Nope.
Pure greed is the first path to ruin.
Depositors OK to 250,000.
Either way for all the banks, 30B hit.
Thank Brandon.
Got a Baghdad Bob to with that? Lol
LOL. So did I.
Oh I am pretty sure the big banks who put in $30 billion have that money backstopped/guaranteed by the treasury/fed/FDIC. They wouldn’t prop up a bank that is seeing mass exodus of $100 billion without some assurances. They could’ve just bought the bank instead.
The 30B goes back to the FDIC. Big banks have to cover it.
It was either take it over now or pay later.
I didn’t follow the details of that closely so you may be right. I just saw that people left First Republic and put the cash in the big banks, and the big banks were sort of compelled (coerced, finagled, bribed, wink-nod whatever deal it was) to deposit much of it right back into First Republic. I can’t imagine they would do that without assurances the money would be safe... unless it was a payoff of some kind, e.g. “nice big bank you got here, shame if we audited it”.
What I mean is the FDIC is insurance that all the banks pay into.
Much like UI that companies pay into.
Wall Street was saying either they shore up the bank now, or pay the FDIC later.
Looks like they decided to let it go. Many people were betting the Fed would bail it out. They lost.
I saw the same. Gotta be careful with those headlines.
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