this really feels like a setup to let a big bank buy a little bank for nothing
if we are really talking about people fleeing banks in "trouble", they would all close tomorrow...and don't tell me about stress-tests, those don't incorporate things like a broad collapse in commercial RE (which ALL the banks will be hit by)
…reporting First Republic’s balance sheet losses and falling stock and bond prices.
> feels like a setup to let a big bank buy a little bank for nothing
It’s not. That JPMorgan wound up buying it means literally nobody else submitted a valid bid, because the OCC and FDIC would have much preferred to not waive rules in making this happen. (Remember, too, the $30bn the big guys deposited with First Republic in March [1].)
[1] https://www.cnbc.com/2023/03/16/group-of-financial-instituti...
https://www.federalreserve.gov/publications/2023-Stress-Test...
I think financial regulators are a bit too soft-touched, but they aren't so incompetent that they would neglect real estate, of all things, in stress test scenarios in this post GFC world.