by Chris Black
Big banks like Wells Fargo, JP Morgan Chase, BOA, Citigroup et al agreed to perform a historic $30 billion unsecured deposit injection in First Republic Bank.
This is basically the first private bailout in history.
Look, the big banks are helping out a little one out of the goodness of their hearts, it’s like Hannukah:
BREAKING: Group of financial institutions in talks to deposit about $20 billion in First Republic, sources say (via @DavidFaber) https://t.co/lhgceOTnik
— CNBC Now (@CNBCnow) March 16, 2023
The truth is that the big banks bought up millions of shares of First Republic, then used depositor’s cash to “bail them out” and voila, cost free acquisition.
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