The Daily A Third Bank Implodes. Now What?
27 snips
May 2, 2023 
Jeanna Smialek, an economy correspondent for The New York Times, dives deep into the ramifications of the recent failure of First Republic Bank. She discusses whether this marks the end of the banking crisis or just the beginning of more troubles. The conversation covers the implications of deposit thresholds during crises and regulatory rollbacks that contributed to the collapses. Smialek also draws parallels to the 2008 financial meltdown, questioning accountability and the future stability of the banking industry amidst rising interest rates.
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First Republic Bank Collapse
- First Republic Bank's collapse followed Silicon Valley Bank and Signature Bank.
- It was a slower failure, triggered by similar issues like rising interest rates and customer withdrawals.
Government Intervention
- Unlike previous bank failures, First Republic was sold to JPMorgan Chase.
- This prevented depositor losses but differed from government intervention in earlier cases.
Cost to Taxpayers
- JPMorgan Chase's purchase cost the government $13 billion, covered by an insurance fund paid by banks.
- While not direct taxpayer money, this cost could indirectly affect bank customers through increased fees.