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Blankfein Suggests Wall Street’s First Republic Rescue Was Bad Idea
Lloyd Blankfein -- who, for those unfamiliar, ran a bank at one point -- isn't enamored with the actions undertaken last week by Wall Street to shore up confidence in the US banking system.
Although I suspected the $30 billion group deposit in First Republic might calm the panic, I was wrong. Or at least as it relates to First Republic which, as of Wednesday, was still pondering the best path forward. Among the options discussed: Government support or federal guarantees of some kind aimed at ma
I’ve been puzzled why JPM et al are trying so hard to save FRC, whose monied customer base will surely be attractive to them.
I’d guess the specter of more regulation when the dust settles. If this crisis gets contained at FRC, it can get blamed on VCs and crypto. If it metastasizes, banks are going to be first in the firing line in the post-mortem.