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© Copyright 2023 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.First Republic Bank seized, sold to JPMorgan Chase
By KEN SWEET NEW YORK©2024 GPlusMedia Inc.
11 Comments
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Clay
What happens when RATES rise QUICKLY, why you ask?
1) Deposits leave/run-off for higher returns than savings accounts, e.g. money market funds investing in treasuries
2) Long Duration Assets marked to market, reflects higher rates, eg. mortgage 'credit' portfolio DROPS in Value!
Clay
Also 'core' US inflation's UNCHANGED since August 22
PLUS OR MINUS 4.5-5%
Clay
Logical follow-up to above, longer Inflation remains elevated, rates remain elevated and banking 'cancer' of deposit run-off and asset market CONTINUES!
It's Why drivers of inflation, like military spending, war, money printing, deficit spending, excess profits, geopolitical risks, viruses, aging, workforce decline etc. all contribute to SUSTAINED ELEVATED INFLATION
Class over!
dagon
What a telling turn of phrase by Dimon “Our government".
It certainly is, bought and paid for.
njca4
Let them FAIL.
Let the people who invested money in the bank take accountability.
WA4TKG
I sure hope my daughter has been buying into Chase since she got picked up by their Internship program a few years ago :)
TokyoLiving
And this is the begginning for good old US....
Moonraker
Lax regulation once again, driven by the interests of the players the regulators should be regulating. We never ever learn.
JeffLee
Giving cheap loans to billionaires who hoard massive piles of cash in savings accounts. Gee, what a great business model. I'm not saying the people who run these kinds of banks are stupid, it just seems they're myopic or have allowed greed or ambition blinker them from reality. Or something.
Yrral
Nobody is regulated the bank,but former bankers
Clay
What scared D. Trump?! Mafia, Russians and Organized Crime in general, but did love going after terrorists, drug cartels while in 1600 as well as bankers pre 1600!
History lesson over, but banks never seem to learn/remember!