The FDIC seized First Republic Bank and sold it auction to JP Morgan. Reps from JP Morgan stated that they would "benefit modestly". JP Morgan is paying about $10B and the FDIC losses are about $13B. This was the second largest bank failure in World History.
Quote from: Uomo Senza Nome on May 01, 2023, 11:25:12 PMThe FDIC seized First Republic Bank and sold it auction to JP Morgan. Reps from JP Morgan stated that they would "benefit modestly". JP Morgan is paying about $10B and the FDIC losses are about $13B. This was the second largest bank failure in World History.
OUCH!
That's a hefty loss.
I do wonder, what happens to loans, mortgages, deposits, etc. How the hell do they sort that all out?
Quote from: Lambykins on May 03, 2023, 06:53:45 AMQuote from: Uomo Senza Nome on May 01, 2023, 11:25:12 PMThe FDIC seized First Republic Bank and sold it auction to JP Morgan. Reps from JP Morgan stated that they would "benefit modestly". JP Morgan is paying about $10B and the FDIC losses are about $13B. This was the second largest bank failure in World History.
OUCH!
That's a hefty loss.
I do wonder, what happens to loans, mortgages, deposits, etc. How the hell do they sort that all out?
The assets (mortgages, loans etc) and liabilities (Demand deposits, bond issues etc) all transfer over to acquiring institution. The interesting thing here is that the bank was seized and put up for auction two days later. The amount of due diligence done here is somewhere between thin and not at all.