Regulators are more watchful, and banks are trying to be more resourceful.
Emily Flitter of The New York Times explains how the head of JPMorgan became one of the key people trying to shore up the banking system.
Larger lenders and regulators step in for the good of the overall banking system. But confidence among depositors is key.
JPMorgan Chase’s purchase of First Republic includes its brick-and-mortar locations. In-person interaction is still a key part of the business.
These mortgages were key to the economic climate that led to the 2008 financial crisis. First Republic had a lot of them.
New regulation and industry consolidation will be key. Loans may be scarcer for new businesses and in low-income and rural communities.
JPMorgan acquired First Republic’s assets and customers, but also a lot of outstanding debt.
For one, help from the FDIC, which will absorb up to 80% of the losses coming from First Republic’s residential and commercial loans.
Main Street banks, often more diversified and risk-averse than Wall Street banks, are largely shrugging off First Republic’s meltdown.
The reverberations of the Silicon Valley Bank collapse have taken down First Republic. What’s next for the financial industry?
