chase to require them to buy after they held an auction where some other banks participated as well to see if they would want to buy those first republic assets. now, jpmorgan will get all of those deposits and substantially all the assets at the bank as well. now to put that in numbers terms, that s roughly $92 bill in deposits and that includes the 30 billion and other banks put into first republic last month as a sign of faith in the bank. it will also take on around $173 billion in loans outstanding that first republic has put out there and $30 billion in a securities portfolio. now, in order to get this deal done, jpmorgan and those federal regulators at the fdic both agreed to share in any potential future losses on any of those first republic loans i mentioned. things like mortgages, also
The Federal Reserve is on track to raise its benchmark interest rate for the 10th time on Wednesday, the latest step in its yearlong effort to curb inflation.
The Federal Reserve is on track to raise its benchmark interest rate for the 10th time Wednesday, the latest step in its yearlong effort to curb inflation with the fastest pace of hikes in four decades.
deposits have stabilized. in certain cases for certain west coast lenders considered peers of first republic or silicon valley bank, they ve actually said in the last few weeks they ve seen customer inflows for deposits. monica, one of the things specialists i ve spoken to are concerned about is that the markets aren t yet reacting to the possibility of default. the debt ceiling crisis not getting resolved. and whereas you know, washington usually resolves this thing at the last minute. are there any signs yet between speaker mccarthy and the president of the united states that the president is going to negotiate now? that the speaker thinks he s got some leverage because of having squeaked through that budget plus debt ceiling combo last week? that is the absolute critical
commercial real estate. so what this does mean is that anyone who is a customer who has deposits at first republic will continue using the bank just like they always have and because it will eventually become part of jpmorgan chase once all the integration is done, all those customer deposits will be held at jpmorgan chase, which is viewed as one of the if not strongest american bank. now the fdic does, andrea, estimate that this will cost the deposit insurance fund roughly $13 billion roughly the cost for silicon valley, which is estimated at $20 billion. you may recall back during the great financial crisis, the biggest bank failure was washington mutual and it was none other than jpmorgan chase that came in to rescue that bank. is this a good deal for jpmorgan chase? bottom line. there are a lot of risk