First Republic Bank Fails and acquired by JP Morgan Chase

Today we have a story everyone seems to cover at least in general but doesn’t seem to reflect as big of an issue as this really is.

There was another huge bank, The First Republic Bank that has failed and been taken over by regulators this morning. Monday the 1st of May, 2023.

This was the second largest bank ever in the US to fail and the assets it had under its control were worth $229 billion. The largest Bank ever to fail in comparison was Washington Mutual in 2008 and its assets totaled $386 Billion.

I remember the Washington Mutual failure as my parents had a mortgage with them at the time. Washington Mutual was bought out by JP Morgan Chase at the time.

Do you know which bank bought out First Republic today ?

You guessed it. JP Morgan Chase.

A friend of mine put it perfectly. By the failures of these smaller, more independent banks our Banking system is becoming more and more centralized and less independent with less and less options for consumers.

So far this year we had three bank failures. They were as follows:

Signature Bank located in NY
Silicon Valley Bank located in California
First Republic Bank also located in California

Well looks like the Top Democrat States have their banks falling like flies.

Now let me mention real quick that many people would go into statistics by year and say that for example in 2009 there were 140 banks that failed. In 2010 there were 157 banks that failed. That gives a total of 297 bank failures in 2 years.

Looking at those numbers you can easily say to yourself that this year we had 3 bank failures and it’s nothing to panic about. Compared to 140 and 157 it’s nothing right ?

Wrong.

The total Assets controlled by those 297 banks that failed in 2009 and 2010 combined was $266 Billion. Adjusted for Inflation over the years that amount would be $375 billion.
Now to put that in perspective, those 3 banks that have failed this year in the first 4 months of the year had assets totaling $556 BILLION…

Those three banks had $181 Billion more in assets than the 297 banks that failed in 2009 and 2010 combined… Just think about that.

As I said before, JP Morgan Chase has bought this First Republic Bank out. The statement provided from Chase was this:

“Our government invited us and others to step up, and we did.”

That statement was given by Jamie Dimon, CEO and Chairman of JP Morgan Chase according to the Associated Press.

First Republic had a total of 84 branches and today, this Monday morning they all opened up as Chase instead of First Republic.

So as I see it, another bailout for the banks and who suffers ? The shareholders of the Bank as Associated press is reporting is part of the deal that was done.

Millions of dollars of shareholders money wiped out to a FAT ZERO without a bailout. The institutions get bailed out and given great deals, but shareholders ? ZERO…

Dimon, the CEO of Chase also said in a conference call with both reporters and investors that he believed “this part of this (banking) crisis is over.” Other midsize banks reported their results last week and the vast majority of them showed deposits had stabilized and profits remained relatively healthy. The outlier was First Republic.

Now by that statement it’s easy to pick up that by him saying “this part of the crisis” is over and not saying “the crisis is over”, that tells you that more banks are coming. More failures will happen and the financial system will become more and more centralized and beholden to the biggest giants that also makes it easier to regulate and control by the government.

First Republic Bank was Once the envy of the banking industry, but it has struggled since the March collapses of Silicon Valley Bank and Signature Bank. The bank catered to wealthy clients and had taken on a large amount of uninsured deposits — that is, deposits above the $250,000 limit set by the FDIC.

So the bank and its clients do get bailed out again I presume. The statement from FDIC was as follows just to confirm for you that the wealthy are always being helped out.

“To protect depositors, the FDIC is entering into a purchase and assumption agreement with JPMorgan Chase Bank, National Association, Columbus, Ohio, to assume all of the deposits and substantially all of the assets of First Republic Bank,” the FDIC said in a statement as per CNN.
First Republic customers’ deposits will continue to be FDIC-insured.
FDIC insurance covers up to $250,000 per depositor for each account ownership category. That means some customers may be insured for more than $250,000.

We are 4 months into 2023. We have been under FULL Democrat leadership for 2 years. We are in the 3rd year now and they still keep blaming everything from Bank Failures to Train Derailments on Trump. Even if it were true, which I don’t believe is the case, Democrats had plenty of time to fix the mistakes THEY say Trump made.

Just recently we have had Republicans take the house and make it harder for Biden to do more major damage to the United States Economy.

Things are not looking good my friends. I’m personally hearing from multiple trusted sources of mine that the US Economy will fail. There is a low probability that it will happen within a year. There is around 60 to 70 percent probability that it will happen within the next 5 years though.

I will tell you this. The White House keeps saying we have a strong economy and a growing one. They keep saying Biden created 11 million jobs when in fact so many people were out of work because of the pandemic that probably 9 million of those jobs were people finding new jobs or going back to work after the pandemic.

It is unbearable to listen to the ACTUAL lies coming out of the current white house and the press secretary that they installed more because of her sexual orientation and skin color than actual qualifications.

This banking crisis as I see it is just beginning. The Brics countries are slowly and partially moving away from the dollar and the petrodollar world wide. Countries like Russia, Iran, China, Saudi Arabia and others.

Many fear mongers are saying this will completely destroy the dollar domination in the world, but I think that statement is a little bit over exaggerated.

We have to remember that most of the world is invested in American Companies which are in the S&P 500 for example and there they can operate only in Dollars.

There is almost no possibility in the near future for the world to completely move away from using the dollar. There is just too much tied to it and too many countries have to keep using it to be included in the world’s biggest markets.

I’m not saying it can not happen but I am saying that in my view it’s a slow process that will take years to really hurt the United States.

The worst thing hurting this country right now is Biden and the Democrats looking to raise the debt ceiling and spend trillions extra that we really can not afford.

If by any chance Donald Trump will get elected in 2024 again it will slow down the process of weakening the dollar yet again.

We know he will again take the country out of the Paris Climate Agreement and produce much more energy and oil here in the US which will make this country stronger and less dependent on others.

Trump will also make sure that the war in Ukraine ends fast and we will not be sending any more of our tax dollars to fund it.

As for Oil and energy dependence, I still remember Biden going to Saudi Arabia, bumping fists with the leaders there and asking for them to produce more oil, which he said would reduce prices world wide, just to get rejected a few days later by them refusing.

How weak does that make America look ? It’s terrible.

The banking crisis might be temporary but the Economy is starting to tank slowly. Last quarter we were at a 1.1% GDP for God’s Sake. It has fallen the two previous quarters as well. As we are going we are on the road to a recession.

Dems keep talking about Trump’s average GDP being 0.97% but always fail to mention that he dealt with a pandemic, an unprecedented event that not many before him had to deal with in today’s world economy. The whole world dealt with this.

Things are not looking good and as new developments with our economy come about and something happens in the banking system again I will be talking about it here. Make sure of that. So remember to follow, subscribe to the podcast and listen. Share it with friends as well if you’d like to keep them informed.

I try to source my information from multiple sources, opposite views and search all that for the most reliable view which I will also share my opinion on.

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