It’s not over yet

It’s not over yet

Another American First Republic bank has just gone down in history.

Clear and worrying signs of a deterioration in the financial situation of California-based First Republic Bank began to appear after the bankruptcy of Silicon Valey Bank (SVB) in March. From that moment, First Republic customers began to systematically withdraw their deposits there. In this way, the bank lost capital and the value of its shares fell. Consequently, this forced the Federal Deposit Insurance Corporation (FDIC) to take control of the bank and then sell it to JPMorgan Chase.

According to experts, the collapse of the First Republic Bank is not the end of bankruptcies in the banking sector. The Federal Reserve (the American central bank) continues to raise interest rates, which is perceived as a tool to fight the ever-growing inflation. And it is in this action that the reasons for the collapse of three American banks are seen. It is therefore to be expected that their fate will be shared by other financial institutions.

Source: https://www.bankier.pl/wiadomosc/Oferta-JP-Morgan-na-First-Republic-przyjeta-przez-regulatora-8533080.html

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