Hey Guys,
As I’m sure you’ve heard, First Republic was seized by the FDIC and immediately sold to JP Morgan over the weekend. This news was surprising but not unprecedented. Markets have been expecting this ever since the banking crisis in March.
This is because First Republic had a similar profile to Silicon Valley Bank and Signature Bank: large unrealized losses and lots of uninsured deposits. These three banks aren’t the only ones with these risk factors, so is the banking crisis over?
For now, it looks like it might be, and this could be bad news for markets. I suspect the dip we saw earlier this week was in part due to the expectation that the Fed would print money to bail out First Republic. It didn’t happen, but maybe it will next time.
Enjoy!
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⛓️ 🔗 Useful Links 🔗 ⛓️
► Banks Have 1.7 Trillion In Unrealized Losses: https://fortune.com/2023/03/23/banks-…
► Banks With Most Uninsured Deposits: https://www.visualcapitalist.com/rank…
► Fed Considers Expanding BTFP For First Republic: https://www.bloomberg.com/news/articl…
► JP Morgan Takes Over First Republic: https://www.bbc.com/news/business-654…
► US Bank Lending Declines Sharply: https://www.bloomberg.com/news/articl…
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📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.
