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First Republic Passes Away Peacefully. Is In Better Place Now
I have some bad news. After a hard fight, First Republic passed away overnight. It was closed early
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As multiple other banks were reportedly bidding in a “highly competitive bidding process” per the FDIC, it would be interesting to know why FDIC was willing to make this exception for JPM.
Presumably because they wanted this to be resolved right now, and for good. If that was the case, I don’t blame them. As tired as I was of reading about First Republic every, single day, regulators were probably at wits’ end with it. Just give it to Dimon and let everybody move on with their lives. At some point, practicality trumps principle.
Reportedly jpm bid for almost all of First Republic. The other bids were more piecemeal and complicated. Simplicity and a more transparent read to fdic losses went in jpm favor. Note Bank of America was invited to bid and declined.
USB was also invited and declined, which makes sense, as it can’t afford to get any larger.
Given the “Too big to fail” keep getting bigger, how many decades will it take for decentralization to unwind this aggregation of wealth?
What are the unintended consequences (besides what we learned in the GFC)?