The president of the United States, Joe Biden, said Monday that the banking system is “safe and sound” after the rescue of the regional bank First Republic, the third North American bank to succumb to the financial storm unleashed 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, including protecting small businesses across the country that need to be able to pay the wages of their workers,” Joe Biden said at a White House event promoting small businesses. companies.
The President added that, thanks to the intervention and sale of the First Republic, all Americans with bank accounts will continue to be able to access their savings.
The President also pointed out that the bailout of the First Republic was carried out without recourse to US taxpayer money, since JPMorgan Chase seized all of its deposits and virtually all of its assets.
In the 2008 financial crisis, then-President George W. Bush (2001-2008) had to withdraw money from state coffers to finance a $700 billion bailout for banks and other services in the financial sector.
The FDIC announced today that JPMorgan has won the bid to purchase First Republic’s assets.
As of April 13, First Republic, which was among the 15 largest banks in the country, had about $229.1 billion in total assets and $103.9 billion in total deposits.
The bank, which had already been bailed out with a $30 billion fund provided by the country’s main financial companies, including JPMorgan, collapsed again after announcing its quarterly results, in which it revealed that, during the worst time in the At the time of the crisis, it had lost $100 billion in deposits.
San Francisco-based First Republic has been in trouble since the collapse of Silicon Valley Bank and Signature Bank in March.
Regulators spent the weekend trying to find a solution before the opening of the US stock markets, reports the Associated Press (AP) news agency.
Last Friday, First Republic shares closed at $3.51, compared with $170 a year ago.
Source: TSF
