A seizure and sale of First Republic, which would wipe out the equity of FRC and potentially impose losses on creditors, could come as soon as this weekend, the WSJ sources said.
And so JPM, which is already the largest US bank is about to get even bigger, by scooping up all the good FRC assets while leaving US taxpayer holdings on to the toxic ones.
That said, it wasn't immediately clear whether the $30 billion in deposits funneled by JPM and other banks into FRC will be treated as insured funds (why should they should be insured?), nor was it clear how a wipeout of this capital, which would spark a systemic crisis simply because the Fed is now running policy of "monetary tightening through bank collapse", having failed to contain inflation and tighten policy using conventional means.
Intentional stupidity (and desire to implode Western Civilization through COVID, Social Chaos & Overt Fasco-Communism), has made this just a new hyper-train of the 1930s and soon 1940s disruption.
Be interesting to see if they keep cranking the interest rates as well as the inflationary pressure in an attempt to deprive the working class of their homes.
Be interesting to see if they keep cranking the interest rates as well as the inflationary pressure in an attempt to deprive the working class of their homes.