{"id":565238,"date":"2023-03-18T00:33:54","date_gmt":"2023-03-17T21:33:54","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/heres-why-the-too-big-to-fail-banks-bailed-out-first-republic\/"},"modified":"2023-03-18T00:33:54","modified_gmt":"2023-03-17T21:33:54","slug":"heres-why-the-too-big-to-fail-banks-bailed-out-first-republic","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/heres-why-the-too-big-to-fail-banks-bailed-out-first-republic\/","title":{"rendered":"#Here\u2019s why the \u2018too big to fail\u2019 banks bailed out First Republic"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2495fae1d48\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2495fae1d48\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/heres-why-the-too-big-to-fail-banks-bailed-out-first-republic\/#Heres_why_the_%E2%80%98too_big_to_fail_banks_bailed_out_First_Republic\" >Here\u2019s why the \u2018too big to fail\u2019 banks bailed out First Republic<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/heres-why-the-too-big-to-fail-banks-bailed-out-first-republic\/#Private_banks_say_the_bailout_was_their_idea_but_reporting_indicates_otherwise\" >Private banks say the bailout was their idea, but reporting indicates otherwise<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/heres-why-the-too-big-to-fail-banks-bailed-out-first-republic\/#The_rescue_avoided_another_appeal_to_taxpayer_funds\" >The rescue avoided another appeal to taxpayer funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/heres-why-the-too-big-to-fail-banks-bailed-out-first-republic\/#Smaller_banks_are_fuming_mad\" >Smaller banks are fuming mad<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/heres-why-the-too-big-to-fail-banks-bailed-out-first-republic\/#Taxpayers_are_still_angry_about_financial_sector_bailouts\" >Taxpayers are still angry about financial sector bailouts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/heres-why-the-too-big-to-fail-banks-bailed-out-first-republic\/#Could_taxpayers_be_called_upon_to_backstop_the_entire_banking_system_yet_again\" >Could taxpayers be called upon to backstop the entire banking system yet again?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"Heres_why_the_%E2%80%98too_big_to_fail_banks_bailed_out_First_Republic\"><\/span>Here\u2019s why the \u2018too big to fail\u2019 banks bailed out First Republic<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<p>A consortium of 11 giant banks that are ostensibly in competition with one another came together Thursday to bail out one of their own, the California-based First Republic, in order to help stabilize the teetering U.S. financial system.<\/p>\n<p>The $30 billion transfer to First Republic by banks including JPMorgan, Citigroup and other banking juggernauts that were deemed \u201ctoo big to fail\u201d in the wake of the 2008 financial crisis is spurring a flight of deposits away from smaller lenders.<\/p>\n<aside class=\"ad-unit ad-unit--mr1_ab\"><\/aside>\n<p>It is also raising eyebrows about the relationship between Wall Street and the federal government.<\/p>\n<p>The private-sector rescue came just days after a public-sector bailout of Silicon Valley Bank (SVB) and Signature Bank by the Federal Deposit Insurance Corporation (FDIC), Federal Reserve and Treasury Department. <\/p>\n<p>In that deal, taxpayer money is being used to backstop a federal line of credit extended to ailing banks.<\/p>\n<p>Administration officials maintain the move to save First Republic was done at the initiative of the financial sector, but <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-03-16\/first-republic-to-get-30-billion-of-bank-deposits-in-rescue?srnd=premium\">multiple outlets<\/a> report that Treasury Secretary Janet Yellen leaned on JPMorgan CEO Jamie Dimon to get the deal done.<\/p>\n<p>The effects of the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> on the beleaguered First Republic, which had at one point lost 80 percent of its share value since Monday, were im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>te.<\/p>\n<p>First Republic stock rose 10 percent on news of the rescue package on Thursday but was down more than 30 percent during trading on Friday.<\/p>\n<aside class=\"ad-unit ad-unit--mr2_ab\"><\/aside>\n<p>Here\u2019s what you need to know about the latest bank rescue and what it means for the relationship between the government and big finance.<\/p>\n<p><strong>A call for consequences: Biden urges Congress to crack down on failed bank executives<\/strong><\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1400\" height=\"787\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/powelljerome_030723gn03_w.jpg?w=900\" alt=\"Federal Reserve Chairman Jerome Powell\" class=\"wp-image-3897921\" srcset=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/powelljerome_030723gn03_w.jpg 1400w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/powelljerome_030723gn03_w.jpg?resize=160,90 160w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/powelljerome_030723gn03_w.jpg?resize=300,169 300w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/powelljerome_030723gn03_w.jpg?resize=768,432 768w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/powelljerome_030723gn03_w.jpg?resize=1280,720 1280w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/powelljerome_030723gn03_w.jpg?resize=645,363 645w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/powelljerome_030723gn03_w.jpg?resize=320,180 320w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/powelljerome_030723gn03_w.jpg?resize=256,144 256w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/powelljerome_030723gn03_w.jpg?resize=512,288 512w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/powelljerome_030723gn03_w.jpg?resize=640,360 640w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/powelljerome_030723gn03_w.jpg?resize=876,492 876w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/powelljerome_030723gn03_w.jpg?resize=960,540 960w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/powelljerome_030723gn03_w.jpg?resize=50,28 50w\" sizes=\"auto, (max-width: 899px) 100vw, 876px\"><figcaption class=\"wp-element-caption\"><em>Federal Reserve Chairman Jerome Powell arrives to discuss his semiannual Monetary Policy Report to Congress before the Senate Banking, Housing, and Urban Affairs Committee on Tuesday, March 7, 2023.<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Private_banks_say_the_bailout_was_their_idea_but_reporting_indicates_otherwise\"><\/span><strong>Private banks say the bailout was their idea, but reporting indicates otherwise<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Representatives for the banking industry told The Hill that the $30 billion bailout for First Republic was the banks\u2019 idea and that the move was designed to stabilize the financial sector in the interests of the broader economy.<\/p>\n<aside class=\"ad-unit ad-unit--mr3_ab\"><\/aside>\n<p>The economy has been under pressure from eight consecutive interest rate hikes by the Federal Reserve.<\/p>\n<p>U.S. officials have repeated this line, saying they\u2019re supportive of the move but not responsible for it.<\/p>\n<p>\u201cThis show of support by a group of large banks is most welcome, and demonstrates the resilience of the banking system,\u201d a Thursday statement from the Treasury and other government agencies reads.<\/p>\n<aside class=\"ad-unit ad-unit--mr4_ab\"><\/aside>\n<p>But reporting by the New York Times and other outlets indicates that the private-sector bailout was Yellen\u2019s idea and that she suggested it to JPMorgan\u2019s Dimon, who then corralled industry leaders to pony up the funds.<\/p>\n<p><strong>A rescue in real-time: Megabanks bail out First Republic<\/strong><\/p>\n<p>\u201cDespite still feeling bruised by the fallout from JPMorgan\u2019s rescues of Washington Mutual and Bear Stearns during the 2008 financial crisis, Dimon started calling other C.E.O.s to raise the money,\u201d the Times reported in its Dealbook newsletter on Friday.<\/p>\n<aside class=\"ad-unit ad-unit--mr5_ab\"><\/aside>\n<p>\u201cJamie Dimon and Janet Yellen were on a call Tuesday, when she floated an idea: What if the nation\u2019s largest lenders deposited billions of dollars into First Republic Bank, the latest firm getting nudged toward the brink by a depositor panic,\u201d Bloomberg News reported Thursday.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"800\" height=\"500\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/potw_031723_800.500_12.jpg?w=800\" alt=\"Treasury Secretary Janet Yellen arrives for a Senate Finance Committee hearing\" class=\"wp-image-3905762\" srcset=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/potw_031723_800.500_12.jpg?resize=800,500 800w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/potw_031723_800.500_12.jpg?resize=300,188 300w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/potw_031723_800.500_12.jpg?resize=768,480 768w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/potw_031723_800.500_12.jpg?resize=645,403 645w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/potw_031723_800.500_12.jpg?resize=50,31 50w\" sizes=\"auto, (max-width: 899px) 100vw, 800px\"><figcaption class=\"wp-element-caption\"><em>Treasury Secretary Janet Yellen arrives for a Senate Finance Committee hearing to discuss President Biden\u2019s fiscal 2024 budget on Thursday, March 16, 2023. Annabelle Gordon <\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"The_rescue_avoided_another_appeal_to_taxpayer_funds\"><\/span><strong>The rescue avoided another appeal to taxpayer funds<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The private rescue takes taxpayers off the hook for yet another bank failure, just days after their money was put up to insure rich depositors from the venture capital industry at SVB.<\/p>\n<p>Political blowback from a second round of public bank bailouts may have been what the Biden administration was trying to avoid in asking private bankers for their help.<\/p>\n<aside class=\"ad-unit ad-unit--mr6_ab\"><\/aside>\n<p>\u201cThis First Republic thing, it\u2019s dis<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ointing,\u201d former FDIC chair Sheila Bair said on the CNBC television network on Friday. \u201cI\u2019m glad at least they didn\u2019t use government support, that the private banks came in to try to stabilize it, but it\u2019s not clear it\u2019s working. The problem is with this that fear becomes the major issue.\u201d<\/p>\n<p>\u201cThis is a classic Jimmy Stewart problem,\u201d she added, referring to the famous pop culture example of a bank run in the classic Christmas film \u201cIt\u2019s a Wonderful Life.\u201d<\/p>\n<p><strong>Nobody likes bailouts? \u2018Unfortunate and wrong\u2019: Angry taxpayers respond to latest bank bailouts<\/strong><\/p>\n<aside class=\"ad-unit ad-unit--mr7_ab\"><\/aside>\n<p>Bair said that people need to understand that deposits in a bank aren\u2019t simply locked up safe, but are reinvested in ventures that carry varying degrees of risk.<\/p>\n<p>Billionaire investor Bill Ackman called the rescue of First Republic <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/BillAckman\/status\/1636569513469652993\" data-type=\"URL\" data-id=\"https:\/\/twitter.com\/BillAckman\/status\/1636569513469652993\">\u201cbad policy\u201d in a tweet<\/a> on Thursday and insinuated that assurances about taxpayer money were being made behind the scenes.<\/p>\n<p>\u201cSpreading the risk of financial contagion to achieve a false sense of confidence in [First Republic Bank] is bad policy,\u201d he wrote. \u201cThe [systemically important banks] would never have made this low return investment in deposits unless they were pressured to do so and without assurances that [First Republic Bank] deposits would be backstopped if it failed.\u201d <\/p>\n<p>Other financiers disagreed, stressing the commercial nature of the consortium\u2019s investment.<\/p>\n<p>\u201cIt\u2019s a commercial transaction, it\u2019s the right thing to do. Yes, it was encouraged by Treasury and the Fed, but it\u2019s the right thing to do, and quite frankly they\u2019re being paid for it. So it\u2019s not a bailout,\u201d Westwood Capital founder Dan Alpert said in an interview with The Hill.<\/p>\n<p>\u201cBorrowing deposits from other banks is hardly anything new. Broker deposits are something that\u2019s been going on forever. Clearly there is a desire for liquidity in various institutions and for an increase in deposits, but the fact is there are excess deposits at many banks,\u201d he added.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1400\" height=\"787\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/cdfb1daf1c2e440291361ecca0562d4b-e1677691075102.jpg?w=900\" alt=\"\" class=\"wp-image-3836505\" srcset=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/cdfb1daf1c2e440291361ecca0562d4b-e1677691075102.jpg 1400w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/cdfb1daf1c2e440291361ecca0562d4b-e1677691075102.jpg?resize=876,492 876w\" sizes=\"auto, (max-width: 899px) 100vw, 876px\"><figcaption class=\"wp-element-caption\"><em>FILE \u2013 The Department of the Treasury\u2019s seal outside the Treasury Department building in Washington on May 4, 2021. (AP Photo\/Patrick Semansky, File)<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Smaller_banks_are_fuming_mad\"><\/span><strong>Smaller banks are fuming mad<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Smaller and midsize banks are furious after Yellen told Congress this week that only the big banks would be backstopped by the taxpayer and not the $23 trillion banking industry as a whole.\u00a0<\/p>\n<p>\u201cThe nation\u2019s community banks denounce today\u2019s statements from Treasury Secretary Janet Yellen that uninsured deposits will be protected only at systemically risky banks, which is a bailout for big banks that rewards mismanagement and risky behavior,\u201d Rebeca Romero Rainey, president of the Independent Community Bankers of America, said in a statement on Thursday.<\/p>\n<p>Ironically, investors are noting that the seemingly charitable move toward First Republic by JPMorgan and others can end up helping their businesses by making them appear as reliable as the federal government.<\/p>\n<p>\u201cLet\u2019s face it. The large banks have been enormous beneficiaries of the last week,\u201d Alpert said. \u201cI can\u2019t tell you how many businesses I know that have run from all these little small banks, basically every bank that\u2019s below the top five and have pulled their money and moved it over to JPMorgan or any bank in the top five.\u201d <\/p>\n<p>\u201cThis has been ridiculous,\u201d he said. \u201cPeople have panicked, unnecessarily, mind you. It\u2019s been crazy, it\u2019s been completely lunatic.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Taxpayers_are_still_angry_about_financial_sector_bailouts\"><\/span><strong>Taxpayers are still angry about financial sector bailouts<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>New polling by Ipsos released this week on attitudes toward bank bailouts shows that a large majority of Americans believe that taxpayers shouldn\u2019t be on the hook for banks that collapse<\/p>\n<p>\u201c84 percent of Americans agree \u2013 56 percent agree strongly \u2013 that taxpayers should not have to foot the bill for irresponsible bank management, including 85 percent of Democrats and 86 percent of Republicans,\u201d the poll found.<\/p>\n<p><strong>More background: What you need to know about this week\u2019s banking crisis<\/strong><\/p>\n<p>But the polling also found that 49 percent of Americans are \u201cin favor of government bailouts of U.S. financial institutions,\u201d up from 37 percent in 2012.<\/p>\n<p>\u201cWe live in capitalism, so we can\u2019t have our economy tanked,\u201d Ellen McTigue, a retired nurse practitioner from New York, told The Hill in an interview. \u201cI just sort of feel like, where is this really going?\u201d<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1440\" height=\"880\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2021\/11\/ca_jpmorganchase_getty_0.jpg?w=900\" alt=\"A sign with the name JP Morgan Chase and Co under the company's headquarter building\" class=\"wp-image-1721887\" srcset=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2021\/11\/ca_jpmorganchase_getty_0.jpg 1440w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2021\/11\/ca_jpmorganchase_getty_0.jpg?resize=300,183 300w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2021\/11\/ca_jpmorganchase_getty_0.jpg?resize=768,469 768w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2021\/11\/ca_jpmorganchase_getty_0.jpg?resize=1178,720 1178w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2021\/11\/ca_jpmorganchase_getty_0.jpg?resize=645,394 645w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2021\/11\/ca_jpmorganchase_getty_0.jpg?resize=50,31 50w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2021\/11\/ca_jpmorganchase_getty_0.jpg?resize=876,535 876w\" sizes=\"auto, (max-width: 899px) 100vw, 876px\"><figcaption class=\"wp-element-caption\"><em>JP Morgan was one of 11 banks that put together a rescue package for First Republic.<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Could_taxpayers_be_called_upon_to_backstop_the_entire_banking_system_yet_again\"><\/span><strong>Could taxpayers be called upon to backstop the entire banking system yet again?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The White House put out a statement on Friday saying that Congress should allow the FDIC to punish the executives of failed banks more severely, docking their pay and banning them from future banking work.\u00a0<\/p>\n<p>But the president didn\u2019t weigh in on whether Congress should be called upon to make the FDIC backstop the entire banking sector, and all deposits in the industry above $250,000, as it did with SVB.<\/p>\n<p>Former FDIC chair Bair said Friday this should only happen if \u201ctrue systemic problems with uninsured deposit runs\u201d start to occur.<\/p>\n<p><strong>Picking up the tab: Here\u2019s who is paying to restore Silicon Valley, Signature Bank deposits<\/strong><\/p>\n<p>\u201cWe did it during the Great Financial Crisis. It would be temporary,\u201d Bair said. \u201cObviously, you should charge banks an extra premium for providing the coverage. Look, I don\u2019t like bailouts of any sort, so I would only do this if they\u2019re seeing true systemic problems with uninsured deposit runs.\u201d<\/p>\n<p>House Financial Services Committee Republican Blaine Luetkemeyer (R-Mo.) told Politico Wednesday that the Congress should in fact insure all bank deposits on a temporary basis.<\/p>\n<p>\u201cIf you don\u2019t do this, there\u2019s going to be a run on your smaller banks,\u201d he said. \u201cEveryone\u2019s going to take their money out and run to the JPMorgan\u2019s and these too-big-to-fail banks, and they\u2019re going to get bigger and everybody else is going to get smaller and weaker, and it\u2019s going to really be bad for our system.\u201d<\/p>\n<\/div>\n<p>Copyright 2023 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.<\/p>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/thehill.com\/business\/3905734-heres-why-the-too-big-to-fail-banks-bailed-out-first-republic\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here\u2019s why the \u2018too big to fail\u2019 banks bailed out First Republic A consortium of 11 giant banks that are ostensibly in competition with one another came together Thursday to bail out one of their own, the California-based First Republic, in order to help stabilize the teetering U.S. financial system. The $30 billion transfer to&#8230;<\/p>\n","protected":false},"author":1,"featured_media":565239,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/nyse_first-republic-bank_031623getty_why.jpg?w=1280","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[81188,30889,117,139252,134353,134661,90482,70791,78738,4965],"class_list":["post-565238","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-janet-yellen","tag-biden","tag-business","tag-business-economy","tag-court-battles","tag-energy-environment","tag-house","tag-jamie-dimon","tag-jerome-powell","tag-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/565238","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=565238"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/565238\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/565239"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=565238"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=565238"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=565238"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}