Regulation
First Republic rescue by 11 big banks who deposit $30b. This firewalls First Republic, protecting US banking system from regional banks falling like dominoes.
Bloomberg says these 30 banks are deemed so important by international regulators they need to hold extra capital and meet other standards.
FDIC named Mayopoulos to oversee a newly created SVB bridge bank operating under a board appointed by the FDIC to assume deposits and certain liabilities of the failed bank.
In 2008 $250k of FDIC insurance covered 80% of deposits, today it only covers 55%, and uninsured deposits grew $2.2t in last 3yrs alone.
Here's the full video of Biden talking Monday, March 13 about the banking crisis triggered by Silicon Valley Bank's demise. Biden says bank deposits are safe for everyone.
Will there be a First Republic bank run after Silicon Valley bank run? Here are some strengths and weaknesses of First Republic.
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