We are not apocalyptic about the banking situation, but when we hear statements like this from the White House, it makes us want to sell everything.
White House Press Secretary Karine Jean-Pierre:
Today’s actions ensure the continued resilience of the banking system, including at community and other banks, which are vital to the American economy, small businesses and workers as well.
All First Republic insured and uninsured deposits are being assumed by JP Morgan Chase. The American people and American businesses can continue to have confidence that their deposits will be there if they need them. At the same time, these actions are being taken in a matter that ensures that the First Republic, which was severely mismanaged, is being held accountable. While depositors are being protected, shareholders will entirely lose their investments and in addition, no taxpayer dollars will be used to facilitate this action. Any losses associated with the resolution of First Republic will be born by fees on banks and not by taxpayers.