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Outside Topic RIP First Republic - Printable Version

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RIP First Republic - 2006alum - 05-01-2023

First Republic Bank Is Seized by Regulators and Sold to JPMorgan Chase

Another sad development in what's felt like a challenging past year for Stanford and the institutions surrounding it...

RE: RIP First Republic - rogpodge - 05-01-2023

https://twitter.com/profstonge/status/1653015679442857987

Western Alliance and Pac West are on the clock. Everyone I know who banked with First Republic loved them. But banks are reluctant to originate mortgages now (money losers), and all banks got addicted to easy money. When losses are at this scale, naturally banks are going to fail. Bank consolidation is here, and my guess is that antitrust regulation will be restrained to accommodate the concentration of deposits at megabanks. The consumers will lose.

RE: RIP First Republic - PVTree - 05-01-2023

The organization I work for has bank accounts at First Republic. They are absolutely great partners with outstanding customer service. Because of the risk, we opened up an account at another bank hoping that it was only temporary. Tough times ahead.

RE: RIP First Republic - jonnyss - 05-01-2023

we loved first republic as well.  on friday we went over to chase to start the process of opening a backup account. now looks likely unnecessary as first republic accounts have become chase accounts.

RE: RIP First Republic - WindyCityCard - 05-01-2023

We've banked with First Republic for the past decade.  Initially the reason was that they were the only place I could find that would do an old-fashioned passbook savings account for my kid.  (I wanted a bank account and savings to be more tangible to her).  Over the years I've been very impressed by their customer service.

A few months ago, shortly before SVB failed, I renewed a CD with FR, and their rates for a 1 year CD were oddly high.  Not just higher than in the past, but higher than I expected FR to offer given what other banks were offering at the time.  The customer service rep and I even joked about it seeming like an error.  At the time, I wasn't sure whether it was a short term idiosyncracy, or a warning sign that they were scrambling for funds.  In retrospect, I guess maybe it was the latter.

RE: RIP First Republic - Mick - 05-01-2023

We do (did) very little banking with Silicon Valley Bank (didn't trust them, tbh), but we do a pretty sizable amount of business with First Republic. I know one of the Managing Directors out of Boston pretty well. Very likeable people, very professional, great with common clients. I know they're with Chase...I hope they do well with them.

RE: RIP First Republic - PAsportsfan - 05-01-2023

Does anyone have insight on the  strength of Poppy Bank? I’ve been banking with them for five years due to the high interest rates on savings and CD accounts. Right now you can get 5.00%

RE: RIP First Republic - PVTree - 05-01-2023

No experience with Poppy Bank. I use Barclays for CDs. They are offering 4.9% on a 12-month CD.

RE: RIP First Republic - 2006alum - 05-01-2023

Yes, we loved First Republic too, but transferred all deposits above FDIC limits out back in March (like everybody else). It's sad that the era of strong regional banks will likely be coming to an end, because they just won't be able to compete with the megabanks that have the size to be designated as SIFIs and essentially guarantee their deposits above FDIC limits...

RE: RIP First Republic - rogpodge - 05-02-2023

https://twitter.com/KobeissiLetter/status/1653400762012057602?

Pac West halted.

https://twitter.com/KobeissiLetter/status/1653404208731676672

Update: two more regional banks halted.

RE: RIP First Republic - 82 Card - 05-02-2023

At one time, we had our mortgage with WAMU and accounts with Bank of Walnut Creek, which got acquired by First Republic. Just can't seem to stay away from Chase.

RE: RIP First Republic - rogpodge - 05-02-2023

https://twitter.com/gurgavin/status/1653076111448850448

At least you aren't this Swedish pension fund manager (who has gone 3 for 3 in US bank failures). 

I guess we were wrong. Goldman Sachs isn't the vampire squid. JPM is.

RE: RIP First Republic - rogpodge - 05-05-2023

https://twitter.com/balajis/status/1654531148289302528

It's going to get worse before it gets better.

RE: RIP First Republic - dabigv13 - 05-05-2023

Lol that Balaji dude is a clown. He predicted bitcoin was going to hit a million dollars due to hyperinflation in the US, bet a million dollars on it, and to his credit actually paid up when he turned out to be wildly wrong (Bitcoin is presently 30k, or 3% of what he predicted).

Maybe he'll be right on this but I sort of doubt it.

RE: RIP First Republic - rogpodge - 05-05-2023

(05-05-2023, 11:49 AM)dabigv13 Wrote:  Lol that Balaji dude is a clown. He predicted bitcoin was going to hit a million dollars due to hyperinflation in the US, bet a million dollars on it, and to his credit actually paid up when he turned out to be wildly wrong (Bitcoin is presently 30k, or 3% of what he predicted).

I think you missed the point of the bet. Hint: he didn't expect to win, but you know about the bet.

Also, he cited the Fed's own discussion about banking risks.

RE: RIP First Republic - Mick - 05-16-2023

Former Silicon Valley Bank CEO Greg Becker faced bipartisan excoriation as the two parties agreed that he, SVB's management and regulatory authorities did a spectacularly poor job of managing risk.

Silicon Valley Bank CEO slammed by senator for 'really stupid bet'

RE: RIP First Republic - Mick - 02-14-2024

And now the IRS is suing the FDIC to recapture $1.4 billion in taxes incurred by Silicon Valley Bank, based upon tax years 2020 - 2023. The FDIC had seized $1.95 billion in cash back in March, 2023 -- for which SVB sued them.

https://www.msn.com/en-us/money/companies/irs-sues-fdic-over-silicon-valley-banks-14-billion-tax-debt/ar-BB1ieuRl