SHOCKING: Another Bank Fails Under Biden
What is going on?
Following its collapse, First Republic bank is now being acquired by JP Morgan Chase, marking the third significant bank failure in the United States over the past two months.
According to Breitbart, on Monday morning, the Federal Deposit Insurance Corporation (FDIC), the national banking regulator of the United States, confirmed that First Republic bank, based in San Francisco, had failed. This announcement came after customers withdrew approximately $100 billion in deposits over the past few days, following the collapse of the bank’s stock price.
Under a government-orchestrated agreement, JP Morgan will acquire “substantially all” of First Republic Bank’s assets and assume all of its deposits. This acquisition includes the 84 offices that were previously operated by First Republic across eight states, which will now open as branches of JP Morgan Chase starting on Monday.
Based on the FDIC’s records, First Republic Bank had an estimated $229.1 billion in total assets as of April 13th, along with $103.9 billion in total deposits. Consequently, it is now the second-largest bank failure in the history of the United States.
The FDIC has confirmed that all deposits will remain insured, and customers need not make any changes to retain their deposit insurance.
As a result of the failure of First Republic Bank, it is estimated that the Deposit Insurance Fund will incur a cost of approximately $13 billion. This is due to a loss-sharing agreement that was reached between the FDIC and JP Morgan Chase.
JP Morgan Chase’s CEO, Jamie Dimon, stated on Monday that the Biden administration had “invited” the bank, among others, to “step up, and we did.” Dimon also mentioned that the takeover would “modestly benefit” JP Morgan Chase and that the assets acquired would be “complementary” to its existing holdings.
The failure of the San Francisco-based bank is likely to become a political issue, with Republicans potentially portraying it as another consequence of President Joe Biden’s poor economy. The failure of the bank may be attributed to what they refer to as “Bidenflation,” which they claim is a result of his administration’s disastrous economic and foreign policies.
When the Federal Reserve intervened by raising rates to combat inflation, the value of large bond portfolios held by some banks suffered. These bonds were purchased by the banks during times of lower interest rates, and as rates rose, the value of the bonds decreased.
