banking crisis - Garner Ted Armstrong Evangelistic Association

First Republic: JP Morgan snaps up major US bank

Natalie Sherman | BBC — Mon, 01 May 2023 21:04:30 +0000

JP Morgan Chase has taken over the troubled US bank First Republic in a deal brokered by regulators.

The Wall Street giant said it would pay $10.6bn (£8.5bn) to the Federal Insurance Deposit Corp (FIDC), after officials shut down the smaller bank.

First Republic had been under pressure since last month, when the collapse of two other US lenders sparked fears about the state of the banking system.

Authorities said they hoped the deal would resolve the panic.

The failure of San Francisco-based First Republic is the second-largest in US history and the third in the country since March.

Worth more than $20bn at the beginning of last month, the bank was known for its big home loan business and for its stable of wealthy clients. It was ranked as the 14th largest lender in the US at the end of last year.

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Source: https://www.bbc.com/news/business-65445427

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First Republic Stuck in Standoff Between US, Bank Industry

Jenny Surane, Hannah Levitt and Katherine Doherty | Bloomberg on Yahoo! — Thu, 27 Apr 2023 19:36:35 +0000

(Bloomberg) — The fate of First Republic Bank has become a game of chicken between the US government and the lender’s largest rivals, with both sides seeking to avoid steep losses and hoping the other will handle the troubled firm.

As the bank’s stock keeps lurching lower — dropping 49% on Tuesday and 30% on Wednesday — regulators have so far refrained from stepping in. They’ve waited to see if banks that deposited $30 billion into First Republic last month can hash out a deal to ensure the firm doesn’t fail and take some of their money with it.

Senior officials at the Federal Deposit Insurance Corp. have even discussed whether to lower their private assessment of the bank, a move that would curb its access to a pair of Federal Reserve lending facilities.

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Source: https://finance.yahoo.com/news/first-republic-stuck-standoff-between-031229737.html?guccounter=1&guce_referrer=aHR0cHM6Ly9kdWNrZHVja2dvLmNvbS8&guce_referrer_sig=AQAAAIAYxLfqGmzFMh24gaFUiFMfWb1NlE1oWJsHGJ4xaxpuCMIShey1ocGUIRNR5z5R4jdumFf-W1dRndgVuvDLBdr9FwQAUm5eGh1N2Q294IDRgbfjl3RBMmAftTFl4HnnnX8Y-7Y1SPcpuCRAjPM8NJCVfG0ZSV1Q8Hy_AMv9WLSY

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Europe Raises Interest Rates; What Will the Fed Do?

Martin Baccardax | The Street — Thu, 16 Mar 2023 16:15:49 +0000

The ECB is ‘monitoring current market tensions closely and stands ready to respond as necessary to preserve price stability and financial stability.’

The European Central Bank lifted its key lending rate by 50 basis points Thursday, defying market forecasts that the region’s simmering banking crisis, triggered in part by the failure of Silicon Valley Bank and accelerated by solvency issues at Credit Suisse, would prompt a pause in its inflation fight.

In a nod to the crisis, which was placated in part by a $54 billion lifeline from the Swiss National Bank to Credit Suisse earlier Thursday, the ECB said it was “monitoring current market tensions closely and stands ready to respond as necessary to preserve price stability and financial stability in the euro area.”

The central bank also dropped previous references to where it sees future rate hikes, indicating decisions will now be more data-dependent.

Nonetheless, given that “inflation is projected to remain too high for too long”, the ECB lifted its benchmark refinancing rate by 50 basis points (0.5 percentage point), to 3.5%, while adding similar increases to its margin lending and deposit rates.

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Source: https://www.thestreet.com/investing/stocks/ecb-hikes-rates-as-bank-crisis-simmers-focus-now-on-fed-response

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The post Europe Raises Interest Rates; What Will the Fed Do? first appeared on Garner Ted Armstrong Evangelistic Association.