Similar to October 2008 when the TARP bailout passed after it failed the first time. The market imploded. Similar to March 2020 when the Fed cut rates and restarted QE during the incipient meltdown. Bank failures will continue

by BoatSurfer600

R.I.P First Republic Bank. FRC, which boosted assets of more than $212 billion on 31st December 2022, will be taken over by the FDIC as the rescue hopes falter. We are witnessing a crisis due to banks’ failure to manage interest rate risk. Many more failures are yet to come

Big banks including JPMorgan Chase, Bank of America asked for final bids on First Republic

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U.S. regulators have asked banks for their best and final takeover offers for First Republic by Sunday afternoon, in a move that authorities hope will calm markets and cap a period of uncertainty for regional lenders.

JPMorgan Chase and PNC are likely bidders for the ailing lender, which would be seized in receivership and immediately sold to the winning bank, according to people with knowledge of the situation. The Wall Street Journal reported those banks’ interest late Friday.

Other companies are likely to step up. Bank of America is among several other institutions that are weighing a potential bid for First Republic, according to people with knowledge of the matter.

 

Nouriel Roubini says markets should brace for a meltdown as stressors lead to a ‘doom loop’ in the economy

“A severe recession is the only thing that can temper price and wage inflation, but it will make the debt crisis more severe, and that in turn will feed back into an even deeper economic downturn,” he said. “Since liquidity support cannot prevent this systemic doom loop, everyone should be preparing for the coming stagflationary debt crisis.”

 

Housing Bubble is popping. Sales to all-cash buyers plunged 24% year-over-year

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