First Republic Bank (FRC) will be placed under the receivership of the U.S. Federal Deposit Insurance Corporation imminently, according to a report.
Reuters reported on Friday that the FDIC has decided that the regional bank's position has deteriorated, leaving no more time to go after a private sector rescue, a source told the outlet.
The stock is now down 70% today and 99% this year.
If FRC is seized, it will be the THIRD bank in the "Top 20" to fail this year. What's the old saying . . . . "Three strikes and you're out?"
In government circles that phrase is being repeated frequently tonight. Consumers shook off the first one when Silicon Valley Bank failed. They stood up and took notice when the second one, Signature Bank in New York failed.
When they took notice, a very significant number of large Depositors at OTHER banks began quickly drawing-down their balances; especially if their balance was above the $250,000 FDIC insurance limit.
It was, in a very real sense, a "quiet" bank run.
The fear in the FDIC is that a failure of First Republic -- which will be the THIRD out of the Top 20 banks -- could very quickly set in-motion, a not-so-quiet Bank Run, that could actually wipe out several other banks, triggering a "Black Swan Event" that cripples the entire financial system.
(Hal Turner Remark: When Silicon Valley failed, I took out a couple thousand in cash just to have "in case." That's certainly enough to feed me and my family for a couple months, without paying credit cards or the like. Yes, my FICO credit score would take a hit, but we're talking about survival here. Us EATING is more important than my credit score.
I was going to put that couple thousand back in the bank, when Signature Bank failed. So not only did I KEEP the cash out, I took out a little more; enough to pay for Fuel deliveries to the house in rural Pennsylvania, and keep the lights on for a couple months.
Frankly, I forgot I took the cash, but when I started seeing these reports about First Republic, I recalled that I __am__ prepared in a modest way, and with this new banking trouble. the cash stays in the remote "stash" location for now. (No, I don't keep it in the house . . . Don't want it robbed, but it is somewhere that I can gain access to it quickly.)
Tomorrow, Saturday, I will do some extra food shopping just to be on the safe side, and tank-up the fuel in my vehicles.)
Comments
These days there are many things to be upset about. But I'm focused on the Lord Jesus getting us through. God bless!
On a related note, however, I notice that the food being highlighted in the video is a bunch of unnecessary comfort food and the like. Certainly, a town like Dillingham on the coast and at the mouth of a freshwater river might have fish and crustaceans, as well as some hunted meat in the nearby lands. I would rather talk to some old Indian or Yupik or whoever else has a tradition in the area to find out what they ate. I would rather have a caribou steak than a peanut butter sandwich at those prices!
Maybe an opportunity for someone with a boat, (a really big boat) to ferry groceries from Seattle to Dillingham. Who knows, maybe Walmart of Costco will help out.
Thank you.
The punchline is: "Fine, I'll come back when you haven't got any".
This is also true of the Eskimo communities in northern Canada. They too are small communities that are remotely located. This means that small quantities of goods have to be shipped or flown in at tremendous cost and there is no economy of scale. A pack of six fresh apples can cost 17 dollars in Iqaluit.
Not to say that such prices are not coming to the lower 48, but that only means that the prices in Dillingham will rise even higher.
https://greatlandgrocery.com/product-category/breakfast-cereal/