First Republic FDIC

 J.P. Morgan (the guy) famously propped up failing banks during the Panic of 1907

 JPMorgan (the bank) famously bought Bear Stearns & Co. (an investment bank not backed by the FDIC) during the financial crisis of 2008 with the government’s encouragement.

First Republic is looking to sell up to $100 billion of assets

First Republic’s stock collapsed on this news.

Matt Levine Bloomberg 26 april 2023

https://www.bloomberg.com/opinion/articles/2023-04-26/first-republic-calls-in-a-favor

First Republic lent a lot of money when interest rates were low, including via cheap mortgages.

Mark Zuckerberg is supposed to have taken out a 30-year mortgage for his $6m Palo Alto home at 1.05%. The value of such loans will have plunged as interest rates have risen.

The deal with many well-heeled customers was that they would agree to move their deposits to the bank as well.

But these customers, who held large balances uninsured by regulators, have now fled. 

Without cheap deposit funding, First Republic has turned to short-term funding—much of it lent by the Federal Reserve and the Federal Home Loan Banks, another government-backed lender, at market rates. 

This has probably demolished its ability to earn a profit.

The Economist 26 April 2023

https://www.economist.com/finance-and-economics/2023/04/26/first-republic-bank-is-on-the-edge-of-a-precipice

First Republic in Standoff Between US and Banking Industry

Firms are balking at doing more after depositing billions

As the bank’s stock keeps lurching lower — dropping 49% on Tuesday and 30% on Wednesday — regulators have so far refrained from stepping in. 

They’re betting that banks that deposited $30 billion into First Republic last month can hash out a deal to ensure the firm doesn’t fail and take some of their money with it.

Bloomberg 27 april 2023 

https://www.bloomberg.com/news/articles/2023-04-27/first-republic-stuck-in-standoff-between-us-and-banking-industry

The struggling regional bank’s FRC, 12.57% $100 billion decline in first-quarter deposits should be closely watched by regulators as they weigh potential systemic risks, Sarah Bloom Raskin said Wednesday.

Deposit drops at banks merit a close look for systemic cracks: ex-Fed officials - MarketWatch

First Republic Set to Get $30 Billion of Deposits in Rescue

JPMorgan, Citi, BofA among big banks that would contribute

 March 2023

https://englundmacro.blogspot.com/2023/03/jpmorgan-m-fl-banker-satter-in-typ-300.html