by Chris Black
This is totally normal and I am convinced this doesn’t imply anything beyond the fact that JPMorgan Chase is a very altruistic group, and should be given even more and more money by the US federal government.
🚨BREAKING: First Republic Bank Is Seized & Sold to JPMorgan in Second-Largest U.S. Bank Failure
The FDIC avoided another banking crisis by seizing First Republic and selling it to JP Morgan, including all $103.9 billion in deposits and $229.1 billion in assets.
First Republic… pic.twitter.com/ndBM9dZ6gS
— Mario Nawfal (@MarioNawfal) May 1, 2023
While JP Morgan looks like it is rescuing First Republic, the reality is that JP Morgan is one of the owners of the FED so in effect it is saving itself and the system which it uses for its benefit.
Just so we’re all clear on this process, the FDIC pays the “private” banks to buy the other banks.
I am trying to understand this part of the First Republic deal. The FDIC is lending directly to JP Morgan? Where will they get the money? What terms?
FDIC will provide a new $50B five-year fixed-rate term financing
— Julia Coronado (@jc_econ) May 1, 2023
There will soon be only one bank left standing.
CBDCs will be easier to roll out when there is only one bank.