![]() Though the collapse of Silicon Valley Bank was in many ways not a typical bank failure, depositors did have access to their money the Monday after it was seized. In this case that agreement is with JPMorgan. ![]() “Most failed banks,” she said, “are resolved by a purchase and assumption agreement,” in which another institution takes over the bank with the support of the F.D.I.C. The government usually arranges a sale of a failed bank over the weekend, so it can open for business as usual on Monday, said Amanda Heitz, an assistant professor of finance at Tulane University. But what happened to the bank this weekend follows a playbook that’s been used before. history, after the collapse of Washington Mutual in 2008, and certainly a dramatic turn. The First Republic bank failure is the second-largest in U.S. decided it was no longer viable on its own. That drop came after the company released earnings results saying that it had borrowed heavily from the Federal Reserve and government-backed lending groups, the financial industry’s lenders of last resort. ![]() Its shares had been pummeled - they dropped 75 percent just last week - as investors feared that it would fail. ![]() It had seen a large outflow of funds as depositors rushed to pull their money and park it in institutions they viewed as safer. ![]() But First Republic struggled nonetheless, and its condition had been deteriorating for weeks. ![]()
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