First Republic's Failure Shows the Limits of Fed Bank Programs
The Breakdown
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First Republic's April 24 Quarterly Earnings Report Collapsed the Stock in Three Days
First Republic lost 100 billion of deposits by March 31st. 30 billion of those remaining deposits are 120 day time deposits, aka jumbo CDs from 11 big banks. This was part of a rescue package led by Jamie Dimon in March. Yellen gave assurances that all noninsured depositors would be covered in any future bank failure. Do this and Washington loses it over yet another quote unquote bailout of bankers.
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