You watching the First Republic News?

Live Updates: First Republic Reaches Rescue Deal With Other Banks

The lender will receive $30 billion in deposits from other banks in an effort to restore confidence in the banking system. Earlier, Treasury Secretary Janet Yellen told a Senate panel that the banking system “remains sound.”

1 Like

Did the banks prop up First Republic because they are fine, public spirited, people? Or did the government prod them into doing it so that it didn’t look like the government doing it?

I have read that J P Morgan, himself, propped up some banks in his day, but the US is much Shinier now.


It is not clandestine


The plan for the rescue deal for First Republic Bank first emerged on Tuesday during a coordination call between Treasury Secretary Janet Yellen and Jerome H. Powell, the chairman of the Federal Reserve, according to a person familiar with discussions.

Saving FR is the first step on the road to saving yourself as it pertains to big banks.

ALL banks have been getting hammered on withdrawals. If FR failed due to a bank run, it would be sure to cause contagion.

The contagion is in the discounted US paper in the bond market. The banks are just some of the vessels.