by Jshbone12
Big banks must come together to save FRC. It’s FRC’s best hope at preventing collapse. However the Australian Financial Review published this MASSIVE smoking gun and nobody is talking about it:
“executives at five of the biggest banks, speaking on the condition they not be named, dismissed the notion of once again banding together to prop up First Republic, especially when it could mean paving the way for investors or a competitor to scoop up the firm at a bargain price.
One expressed a willingness to participate – only if regulators forced the group to take action.
Several banks would prefer that, if it becomes necessary, the FDIC seize First Republic and sell it off. Such a resolution, they said, would be cleaner, even if banks lose money. Some have already taken reserves.”
The government has already said they will not aid in rescue. Big banks apparently are unwilling to help as well. The only possible outcome is a seizure by the FDIC this weekend.
I am jacked to the tits with FRC puts: imgur.com/gallery/4itGe9O
Article reference: www.afr.com/companies/financial-services/first-republic-s-fate-becomes-game-of-chicken-20230427-p5d3qx
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence or consult your financial professional before making any investment decision.