Richardcyoung.com

  • Home
  • Debbie Young
  • Jimmy Buffett
  • Key West
  • Your Survival Guy
  • How We Are Different
  • Paris
  • About Us
    • Foundation Principles
    • Contributors
  • Investing
    • You’ve Read The Last Issue of Intelligence Report, Now What?
  • The Swiss Way
  • My Rifles
  • Dividends and Compounding
  • Your Security
  • Dick Young
  • Dick’s R&B Top 100
  • Liberty & Freedom Map
  • Bank Credit & Money
  • Your Survival Guy’s Super States
  • NNT & Cholesterol
  • Your Health
  • Ron Paul
  • US Treasury Yield Curve: My Favorite Investor Tool
  • Anti-Gun Control
  • Anti-Digital Currency
  • Joel Salatin & Alfie Oakes
  • World Gold Mine Production
  • Fidelity & Wellington Since 1971
  • Hillsdale College
  • Babson College
  • Contact Us

Banks Falling Like Dominoes

May 3, 2023 By Richard C. Young

By Africa Studio @ Shutterstock.com

At the Organic Prepper, Daisy Luther discusses the recent collapse of multiple banks, and the latest of those, First Republic. Luther writes:

It was only 6 weeks ago when the nation was briefly paralyzed with concern as we watched three banks go under, with their deposits under FDIC control. At the time, I wrote that one of the next banks to fail could be First Republic Bank.

And today may be the day that it does unless there’s a dramatic last-minute save. If it does fail, it will be the second-largest bank failure in American history.

UPDATE: First Republic has failed. The FDIC has taken control of the deposits and sold the bank to JP Morgan. As per Zero Hedge:

In the end, early on Monday morning, the US unveiled a hybrid solution – after all other attempts at a private rescue effort failed – one where the FDIC would seize the insolvent First Republic, the 14th largest US bank by assets, making it the second biggest bank failure in US history, and immediately sell the bulk of its assets and all of its deposits to JPMorgan after a sham but “highly competitive bidding process” had taken place over the weekend (one in which virtually nobody wanted to participate as nobody would buy FRC without explicit government backstops, which in the end is precisely what they ended up getting on FRC’s IO and CRE loan portfolio) while keeping FRC’s toxic Interest-only mortgages to Hamptons’ billionaires.

According to the FDIC announcement, JPMorgan would assume all of First Republic’s $92 billion in deposits — insured and uninsured, including the $5 billion in deposits gived by JPM to First Republic on March 16. It is also buying most of the bank’s assets, including about $173 billion in loans and $30 billion in securities.

And the rich get richer.

If you think that your money is safe in the bank, you may want to reconsider. And you may want to do it quickly because just last month, we saw how rapidly the domino effect could take down one after another. (I hold my savings in precious metals. You can learn more here.)

What led up to it?

First Republic’s problems appear to relate to increasing interest rates. CNBC explains:

First Republic is a regional bank that has focused on high-net-worth individuals and their businesses, including offering mortgages at low interest rates to those customers.

Those mortgages, as well as other long-term assets on the bank’s balance sheet, have fallen in market value since the Fed began hiking rates last year, making investors worried that the bank would have to book a sizeable loss if forced to sell those assets to raise cash.

On Friday, stocks for First Republic Bank tanked by 43%. (That’s not the worst of it – stocks have fallen by 97% this year.)

According to Fortune:

A group of 11 banks that deposited $30 billion into First Republic in March — giving it time to find a private-sector solution — have proved reluctant to band together on making a joint investment. A few proposals that surfaced in recent days called for a consortium of stronger banks to buy assets from First Republic for more than their market value. But no agreement materialized.

Instead, some stronger firms have been waiting for the government to offer aid or put the bank in receivership, a resolution they view as cleaner — and potentially ending with a sale of the bank or its pieces at attractive prices.

But receivership is an outcome the FDIC would prefer to avoid, in part because of the prospect it will inflict a multibillion-dollar hit to its own deposit insurance fund. The agency is already planning to impose a special assessment on the industry to cover the cost of SVB and Signature Bank’s failures last month.

For the past month, the FDIC has been scrambling to put together a rescue deal for First Republic, seeking bids from banks like JPMorgan Chase & Co., PNC Financial Services Group Inc., Citizens Financial Group Inc., Bank of America Corp., and US Bancorp. (The latter two declined to bid.) However, the deadline for acceptable bids came and went yesterday with no resolution.

This makes it likely, according to the experts, that the FDIC will seize control of First Republic’s deposits today, putting the beleaguered institution into receivership.

Read more here.

If you’re willing to fight for Main Street America, click here to sign up for my free weekly email.

Related Posts

  • How Does Biden Handle Afghanistan’s Closed Banks/Plummeting Currency?
  • Biden's Open Border Strategy Is Falling Apart
  • RIP Mr. Cub Ernie Banks
  • Biden IGNORES Annual Inflation
  • Author
  • Recent Posts
Richard C. Young
Richard C. Young
Richard C. Young is the editor of Young's World Money Forecast, and a contributing editor to both Richardcyoung.com and Youngresearch.com.
Richard C. Young
Latest posts by Richard C. Young (see all)
  • Microplastics Linked to Chronic Disease - May 21, 2025
  • Rein In the Welfare-Warfare State’s Greatest Enabler - May 21, 2025
  • Could Neocons Sink the Iran Deal? - May 21, 2025

Dick Young’s Must Reads

  • Your Survival Guy’s 2022 Super States: #1 New Hampshire
  • My Favorite Arrondissements in Paris
  • Remembering Brent Scowcroft
  • The Clock is Ticking: You Must Protect Your Family
  • Americans Fleeing High Tax States for Growth Corridors
  • My Battle-Hardened Stock Market Strategy for the Worst of Times
  • Hey, Where’s Everyone Going? Follow the Money Kid
  • Soros’s Open Society Foundation, Charles Koch Team Up
  • Early Advice from Her Dad on Tipping at Charlie Trotter’s
  • Biden Wants to Gut the Tax Benefit of 401K Plans

Our Most Popular Posts

  • A Calculated Decision to Keep Silent
  • An American Tragedy
  • Congratulations, You Graduated into Retirement. Now What? #5
  • Retirement #4: How Do You Feel? How Will You Feel?
  • Who Knew about Biden's Health?
  • Middle East Investment Bonanza as Trump Tours Region
  • Donald Trump’s First 100 days
  • Is Trump Divorcing Bibi?
  • Congratulations, You’re Retired #3: “When You Were Young”
  • PREPARE FOR THE WORST: Poland's Military Overhaul

Compensation was paid to utilize rankings. Click here to read full disclosure.

RSS Youngresearch.com

  • Congratulations, You’re Retired: Now What? Part 6
  • U.S. Billionaires Target Congo’s Cobalt in Bid to Secure Energy Future
  • China Dominates Battery Supply Chain: From Mine to Market
  • Shale Plateau Looms as Global LNG Market Set to Double
  • Congratulations, You Graduated into Retirement. Now What? #5
  • World’s Leading EV Motor Factory to Supply Ferrari and Lamborghini
  • Hackers Target Coinbase: DOJ Opens Investigation into Data Breach
  • Stargate Project Breaks Ground in Texas
  • Retirement #4: How Do You Feel? How Will You Feel?
  • Nippon’s Push for U.S. Steel Approval Faces Uncertainty

RSS Yoursurvivalguy.com

  • Graduation to Retirement: “I Have a Guy” #7
  • Your Retirement Life: Top of the Rock
  • Congratulations, You’re Retired: Now What? Part 6
  • Investing Habits of the Fairly Wealthy: #10 Powerball
  • Is America Poised for Next Gen Nuclear Power?
  • Congratulations, You Graduated into Retirement. Now What? #5
  • Big Blue Blob Cities Drive Residents (and Money) Away
  • Don’t Forget the Laffer Curve
  • Retirement #4: How Do You Feel? How Will You Feel?
  • Don’t Over SALT the Big Beautiful Bill

US Treasury Yield Curve: My Favorite Investor Tool

My Key West Garden Office

Your Retirement Life: Traveling the Efficient Frontier

Live a Long Life

Your Survival Guy’s Mt. Rushmore of Investing Legends

“Then One Day the Grandfather was Gone”

Copyright © 2025 | Terms & Conditions | About Us | Dick Young | Archives