Thursday, June 8, 2023

Biden assures that banks are “safe” after the sale of First Republic

He United States’s president, Joe Biden, assured this Monday that the banking system is “safe and sound” after the intervention and sale of the First Republic Bankthe third US bank to succumb to the financial storm that erupted in March.

Biden welcomed the actions taken in recent hours by the Federal Deposit Insurance Corporation (FDIC), an independent US federal agency for insurance, in order to facilitate the bidding of the bankrupt First Republic Bank, whose assets have acquired JPMorgan Chase.

“These actions will ensure that the banking system is safe and sound, and that includes protecting small businesses across the country that need to be able to pay their workers,” the president said at an event at the White House designed to promote small businesses.

Biden affirmed that, thanks to the intervention and sale of the First Republic Bank, all Americans who have accounts in that entity will be able to continue accessing their savings.

In addition, the president noted that the First Republic Bank bailout has been done without using US taxpayer money, as JPMorgan Chase has assumed all of its deposits and virtually all of its assets.

In the financial crisis In 2008, then-President George W. Bush (2001-2008) did have to use money from the state coffers to finance a bailout of 700,000 million dollars for banks and other government services. financial sector.

Earlier this Monday, the FDIC announced that JPMorgan Chase had won the bid to buy the assets of First Republic Bank.

As of April 13, First Republic Bank, which was among the 15 largest banks in the country, had approximately $229.1 billion in total assets and another $103.9 billion in total deposits.

The bank, which had already been rescued with a fund of 30,000 million dollars contributed by the main financial companies of the country, including JPMorgan, sank again after announcing its quarterly results in which it revealed that during the worst moment of the crisis it lost 100,000 million dollars in deposits.


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