Within the space of two months, JPMorgan turned from adviser to depositor to buyer
It added that the banking system was “sound and resilient,” that deposits were safe and that Americans should remain confident that it could “fulfil its essential function of providing credit to businesses and families.”San Francisco-based First Republic had been hanging by a thread for weeks, ever since the March 10 collapse of Silicon Valley Bank in nearby Santa Clara, Calif.
But the larger banks were reluctant to absorb losses without some kind of government backing that would help First Republic survive further pressure. By Wednesday, the Federal Deposit Insurance Corporation was asking roughly a dozen banks for informal bids, including what buyers would be willing to pay for First Republic’s deposits and assets, and what level of losses the FDIC would have to absorb to get the deal done, according to people familiar with the discussions.
Throughout the banking turmoil, top Biden officials have tried to stick to a few main priorities: avoiding contagion to the U.S. economy, minimizing the risk to taxpayers and protecting depositors rather than shareholders or debtholders. Increasingly, First Republic and its advisers felt they were being edged out of the negotiations. Soon they found themselves on the sidelines, watching as the government and potential bidders decided First Republic’s fate.
The Biden administration had a less hands-on role than with SVB and Signature, insisting regulators at the FDIC were in charge. But crucial figures, including Treasury secretary Janet Yellen, National Economic Council director Lael Brainard and White House chief of staff Jeff Zients, were closely following developments.
Republican lawmakers accused the FDIC last month of neglecting prospective buyers for SVB, questioning whether a bias against bigger institutions was partly why no private-sector solution emerged — a suggestion FDIC chair Martin Gruenberg vehemently denied. But by Sunday, antitrust considerations had become less important, at least for the moment.
المملكة العربية السعودية أحدث الأخبار, المملكة العربية السعودية عناوين
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