JPMorgan Chase Acquires First Republic Bank With FDIC Backstopping Deal While Ignoring Current Banking Laws

  The topline story from the announcement by JPMorgan Chase [SEE HERE]  there are no banking rules/laws in the Biden Fed/Treasury system.

The FDIC is going to assume risk for current First Republic Bank mortgage and commercial loans acquired by JPMorgan, guaranteeing JPMorgan a 5-year fed fixed rate on $50 billion in mortgage bonds.

If the FDIC is guaranteeing all deposits, there's no way for the insurance corporation to capture or hold $1.5% of all banking deposits.

The only reason the FDIC violated its own rules and banking regulations, was because the FDIC didn't, likely -almost certainly- couldn't, take the financial hit from a full takeover of First Republic Bank against the backdrop of the prior terms for Silicon Valley Bank.

The FDIC cannot structurally guarantee all of the First Republic Bank deposits; they need a structure to avoid the government regulators absorbing the bank.

The biggest banks now control all of the leverage, with JPMorgan Chase and Jamie Dimon now controlling more financial power than the government that is supposed to regulate them.

If the legislative branch forced the FDIC to follow the laws currently on the books, the domino of banks starts to collapse.

https://theconservativetreehouse.com/blog/2023/05/01/jpmorgan-chase-acquires-first-republic-bank-with-fdic-backstopping-deal-while-ignoring-current-banking-laws/