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First Republic Bank Is a Problem with No Easy Solution

2 points by gnicholas 4y ago

gnicholas 4y ago
> Part of First Republic’s pitch to the other banks: The big banks would have to pay up anyway if First Republic failed. If the Federal Deposit Insurance Corp. guaranteed all depositors, the other banks would be hit with a special assessment for a federal insurance fund. If the FDIC didn’t guarantee depositors, the banks would take a haircut on their uninsured deposits. Interesting 'gotcha'.