The FDIC has once again had to move in and support a collapsed financial institution --- First Republic Bank — after the second-largest banking failure in the history of the country.
The bank’s collapse is the latest in a slew of other bank failures that began in March. Nevertheless, we’re being told ‘all is well’ by the same government officials and politicians who assured us that nothing like this could happen again after major federal legislation was passed in the wake of the ’08 near-collapse of the entire U.S. financial system.
Oh, and now, as then, banks are being propped up with your tax dollars, though JPMorgan Chase moved to purchase First Republic on Monday.
“Treasury is encouraged that this institution was resolved with the least cost to the Deposit Insurance Fund, and in a manner that protected all depositors,” the Treasury Department said, according to FOX Business. “The banking system remains sound and resilient, and Americans should feel confident in the safety of their deposits and the ability of the banking system to fulfill its essential function of providing credit to businesses and families.”
On Monday, the Federal Deposit Insurance Corporation (FDIC) approved JPMorgan Chase’s $10.6 billion offer to acquire the assets of a San Francisco-based lender following the government’s seizure of the failed bank over the weekend. This marks the third major US financial institution to collapse in the last 60 days, the outlet reported.
However, deposits in First Republic Bank exceeding the $250,000 FDIC insurance limit were not covered. Last week, the bank faced significant pressure after reporting over $100 billion in outflows during the first quarter and exploring possible solutions. Since the failures of Silicon Valley Bank and Signature Bank in early March, First Republic has been struggling and was viewed as the bank at the highest risk of collapse.
Meanwhile on Monday, President Joe Biden --- who literally has no clue what’s going on around him — was trotted out by his handlers to claim that the FDIC’s decision to allow JPMorgan Chase Bank to take over all deposits of First Republic Bank will guarantee US banking system is “safe and sound.”
Be advised many other nations do not feel the same way, it would be wise to prepare and not take advice from corrupted governments.
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