In response to news that regulators had sold the bank to JPMorgan Chase, Warren said system overhaul is long overdue.
The acquisition makes JPMorgan, already the nation’s largest bank, even bigger and could draw political scrutiny from progressive Democrats in Washington.from 11 of the country’s largest banks in March. JPMorgan said the $30 billion would be repaid after the deal closes. Overall, First Republic will go down in history as the second largest U.S. bank by assets to collapse after Washington Mutual, which failed during the financial crisis of 2008.
FDIC said the cost of the deal to the Deposit Insurance Fund which it manages will be approximately $13 billion.Richard Painter, law professor and former White House ethics chief. “How much did First Republic’s execs who created this mess have to pay? If we made them pay, First Republic might not have failed.”Lisa Gilbert, executive vice president of Public Citizen, said, “Once again, we’re reaping the bitter harvest of financial deregulation.
Gilbert’s colleague, financial policy expert Bart Naylor, said, “Bankers at First Republic make reckless decisions, encouraged by bad pay-related incentives.” “Lawmakers understood this was a problem throughout the industry following the 2008 financial crash and required a rule to stop it,” Naylor added. “But dangerously, that rule has not yet been implemented. With the failure of First Republic following the failure of Silicon Valley Bank, regulators must reform banker pay immediately.”As the world changes at an unprecedented pace, we need ethical, independent news more than ever before.
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