The Federal Deposit Insurance Corporation is set to seize control of First Republic Bank, according to multiple reports.
"Receivership is basically the FDIC coming in and handling all the affairs of a failed bank. It's selling the assets of the bank to then meet the obligations of the bank, such as for example, the people who have $250,000 or less deposited," said Dr. Julian Vogel, an assistant professor of finance at San Jose State University.
"When more people withdraw their money, that's when the bank is more likely to go under," he said."However, these banks that are affected also had an issue with their management – they didn't diversify enough, they invested an unproportionately large amount of their assets in risk-free treasury securities, and that is never ideal. Being overexposed to any specific type of security or asset is never ideal.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
San Francisco-based First Republic Bank may not survive, even after two multibillion-dollar bailoutsFirst Republic said in its latest earnings call that is exploring its strategic options, Wall Street code for searching for a white knight. The company noted that it is “taking actions to str…
Read more »
US officials lead urgent rescue talks for First Republic Bank – ReutersCiting three sources familiar with the situation, officials from the Federal Deposit Insurance Corporation (FDIC), the Treasury Department and the Fed
Read more »
Federal Agencies Reportedly Helping With First Republic Bank’s Rescue PlanThe Treasury, the Federal Reserve and the FDIC have reportedly met with several financial companies to help hash out a rescue deal for First Republic.
Read more »
First Republic's stock stabilizes as regional bank searches for rescue dealReuters reported on Friday that U.S. officials are coordinating meetings with other banks to broker a rescue plan for First Republic.
Read more »
Federal Agencies In ‘Urgent’ Talks About Possible First Republic Bank Rescue, Report SaysThe Treasury, the Federal Reserve and the FDIC have reportedly met with several financial companies to help hash out a rescue deal for First Republic.
Read more »
Clueless Yellen fails to stave off bank crisis as First Republic sinksDoes Joe Biden have the chops to face down multiple global threats and secure our borders? And does his economic team, led by Treasury Secretary Janet Yellen, understand what could be in store for …
Read more »