Philadelphia-based Republic First Bank (doing business as Republic Bank) was closed today by the Pennsylvania Department of Banking and Securities, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect depositors, the FDIC entered into an agreement with Fulton Bank, National Association of Lancaster, Pennsylvania to assume substantially all of the deposits and purchase substantially all of the assets of Republic Bank.
As of January 31, 2024, Republic Bank had approximately $6 billion in total assets and $4 billion in total deposits. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) related to the failure of Republic Bank will be $667 million.
$667mm is a drop in the bucket
You guys see deposits are at a record low this year? People having to use credit to eat likely a cause. They had a bank run this time last year… now they have nothing to pull out.
U.S. Banks finished the year with almost $400 billion of unrealized losses on held-to-maturity assets. The assumption is this wouldn’t be a problem because the Fed would cut A LOT this year but what if that doesn’t happen?
The goose is overcooked has been known, but new fun fact:
Add to this the fact that last week - seasonally-adjusted for tax-season - US banks saw the largest deposit outflows since 9/11 (yes, that 9/11)…
https://www.zerohedge.com/markets/bank-failures-begin-again-phillys-republic-first-seized-fdic
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They have to pocket all that money and get out before the poors figure it out. Gotta love they want to turn the lights off on the way out on top of it.
The George bush family purchased a gigantic swath of land in South America. They probably think they’ll be safe there.
They won’t be.
John MacAfee with all his money could not make a go of it down there. The drug lords ARE lords.
Well, the drug lords are the CIA… so they would be fine.