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> They have been in limbo for a few weeks thanks only to the injection of $30bn from other banks. This will be weird/interesting. JP Morgan know what it's doin
by dehrmann 4y ago
> They have been in limbo for a few weeks thanks only to the injection of $30bn from other banks.
This will be weird/interesting. JP Morgan know what it's doing. It looked at First Republic's books before doing this. So either JP Morgan was wrong or there was a deal that they'll be made whole if First Republic goes under. It almost has to be the latter because JP Morgan's only incentive to make the deposit is promoting the appearance of financial stability.
- KirillPanov 4y agoOr JPM coldly calculates that, after this all shakes out, they will account for 30% of the banking sector, and burning $30b now is better than burning >$100b later. FDIC rescues are paid for by (essentially) a levy on the banks.