Why would Wells Fargo and other big banks bail out( $5 billion each) First Republic Bank? What if that banks still fails in a few weeks?
18 replies (most recent on top)
They probably were given no choice by our government and told to give the money!
All these failing banks employ weirdos
I agree with the last poster. FRB catered to high net worth individuals and likely those bank executives had accounts at FRB for their wealth management. It's very plausible because they like to bank where they don't work. Like any WF employee shouldn't be paid by WF and deposit their paychecks back into WF.
Follow the money. Exactly who had the most to personally lose if this bailout didn't happen...? That is where the true answer can be found.
My guess is that a lot of the C-suite types at the big banks also had a ton of their personal investments held at FRB.
They didn't do it out of the kindness of their hearts.
@1cle+1lFn9xbG Makes sense. It would be a "feather in the cap" after all the abysmal failures and morale issues.
I have a feeling that Scarfy wants To buy First Republic. That will be his baby. Just like Di-k K merged with Wells and Stumpy with Wachovia. Now, Scarfy wants to play merge games. The $9.5 billion shelf a few days ago might be related to a merger transaction imo. They already loaned $5 billion and I think the other 4.5 billion plus the $5 billion, total of 9.5 billion will use to buy First R. I think it would be a huge mistake but I am predicting this outcome.
“Anyone who actually is stupid enough to use the term "woke bank" shouldn't be working here. You're an embarrassment.”
You think speaking accurately and honestly is stupid? I guess that’s the mentality of the current “brilliant” “elite” NYC leadership
You're welcome California.
Anyone who actually is stupid enough to use the term "woke bank" shouldn't be working here. You're an embarrassment.
from one stupid woke bank to another!
It’s what the government wants and we do what they say!
FRC is making me a lot of money this week.
Remove Asset Cap!!!
I don’t think infusing a failing bank with 30 more billion dollars is going to help. Once people loose confidence, they will leave the bank for a more stable bank. I hope the govt insured the 5 billion loan to the junk bank that WFC just made.
This is the LTCM playbook from 1998 all over again. I’m guessing they feel like if FRC fails it will cause major instability in the financial system. This is probably being orchestrated by the Fed and Treasury I’m sure.
I hope the regulators realize we’re bailing them out again.
When Covid hit we went out and did PPP loans like crazy, even though we weren’t supposed to because the asset cap, to help the American economy. We then donated all the earnings from it to causes that people like Elizabeth Warren would appreciate.
Now we’re depositing our cash into First Republic so that the bank stays afloat and certain people don’t look bad. Meanwhile, we’re under an asset cap and have WAY better uses for the money.
Wells Fargo to the rescue, but I’m sure it’ll get spun in some unfavorable way by people who are incentivized to make us look bad.
The big banks have more liquidity and if that dries up they can rely on a sympathetic gov't. If high risk plays like VC/crypto are getting some fed help, what's the risk in throwing caution to the wind right?
Yeah this makes no sense to me at all. It's like regulators screwed up not watching these smaller players and now they want big bank shareholders and deposit holders to backstop these dead weights. This is survival time for banks, the government screwed jpm on wamu and burned BofA on countrywide in the past, i would avoid this deal.