The Fed's Balance Sheet Jumped $300B Last Week. Is That Inflationary?
The Breakdown
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Is This a Takeover or an Independent Scenario?
I think what equity market investors are looking at is, is this a takeover or a takeover or an independent scenario? A takeover processes, you have a competitive auction between say JP Morgan, Morgan Stanley, maybe Wells Fargo and Bank of America Merrill Lynch. The take under scenario is it's acquired at a low price because if you deduct the impairment from the book value of the business, then First Republic may be worthless in the market gap. But then the staying dependent scenario, which my interpretation of what Treasury Secretary of Yellen seems to be pushing for is they provide liquidity to First Republic. We saw $30 billion deposited by the top 10 banks of the United States, including JP Morgan into First Republic
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