United States President Joe Biden said on Monday that the banking system is “safe and sound” following the bailout of regional bank First Republic, the third North American bank to succumb to the financial storm that erupted in March.
Joe Biden welcomed the measures taken in recent hours by the Federal Deposit Insurance Corporation (FDIC), the US federal deposit insurance agency, to facilitate the bidding process of the bankrupt First Republic, whose assets were acquired by JPMorgan Chase.
“These actions will ensure that the banking system is safe and sound, which includes protecting small businesses across the country that need to be able to pay their employees’ wages,” Joe Biden said at a White House event to support small businesses. promote companies.
The president added that thanks to the intervention and sale of the First Republic, all Americans with bank accounts will continue to have access to their savings.
The president also pointed out that the rescue of the First Republic was carried out without recourse to U.S. taxpayers’ money, as JPMorgan Chase took over all of its deposits and virtually all of its assets.
During the 2008 financial crisis, then-President George W. Bush (2001-2008) had to pull money from the state coffers to fund a $700 billion bailout for banks and other financial services firms.
The FDIC announced that JPMorgan had won the tender to purchase First Republic’s assets.
As of April 13, First Republic, which was among the top 15 largest banks in the country, had approximately $229.1 billion in total assets and $103.9 billion in total deposits.
The bank, which had already been rescued by a $30 billion fund provided by the country’s top financial firms, including JPMorgan, collapsed again after the announcement of its quarterly results, which showed that during the worst at the time of the crisis it had lost $100 billion in deposits.
San Francisco-based First Republic has struggled since the collapse of Silicon Valley Bank and Signature Bank in March.
Regulators over the weekend tried to find a solution for the opening of US stock markets, the Associated Press (AP) news agency reported.
Shares of First Republic closed at $3.51 last Friday, compared to about $170 a year ago.
Source: DN
