🚨Market Volatility Alert-First Republic🏦 Sale Underway, Results Likely Before Market Opens On 1/5🎢📉📈🎢
🇺🇸 regulators are trying to clinch a sale of
$First Republic Bank(FRC)$⭐️ Citizens Financial Group Inc, PNC Financial Services Group & JPMorgan Chase & Co are among bidders vying for FRC in an auction process being run by the Federal Deposit Insurance Corp (FDIC), Reuters reported.
⭐️ US Bancorp was also among banks the FDIC had asked to submit a bid, according to Bloomberg.
⭐️ The bidders were asked to give non-binding offers by Friday & were studying FRC’s books over the weekend.
🚨 A deal is expected to be announced before Asian markets open on 1/5, with the regulator likely to say at the same time that it had seized the lender.
🤔💭 How Will FRC Sale Affect The Market During The 1st Week of May❓
(1) As the deal for FRC came less then 2 months after Silicon Valley Bank & Signature Bank failed amid a deposit flight from 🇺🇸 lenders, forcing the Fed to step in with emergency measures to stabilise markets, investors will be jittery. I expect VIX to climb on Mon👎
(2) While markets have since calmed, a deal for FRC would be closely watched for the amount of support the government has to provide.
⭐️ The FDIC officially insures deposits up to $250,000. But fearing further bank runs, regulators took the exceptional step of insuring all deposits at for the 2🏦🏦 that collapsed earlier.
⭐️ It remains to be seen whether regulators would do the same for FRC as well. They would need approval by the Treasury secretary, the president & super-majorities of the boards of the Fed & the FDIC.
🚨 A low price sale would increase investor fear that the economy isn’t doing well & lead to a sell-off.
🚨 If the FDIC doesn’t insure all deposits at FRC, another bank run🏦🏃♀️🏃♂️ might occur, destabilising 🏦 stocks
$JPMorgan Chase(JPM)$
causing volatility in the market🎢📉📈🎢 However, gold & crypto might benefit.
🚨 The 1st week of May is a major earnings week. The 👎📰 from FRC May overshadow positive earnings results & heightened negative earnings results.
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however, in covid time stimulus is a must since that's what makes economy still running well. after that though, it's a probable catastrophe
Good article for reading
Good article for you to read
Good article for you
Good article 👍