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FDIC Alert! FDIC Releases Comprehensive Overview of Deposit Insurance System, Including Options for Deposit Insurance Reform: "Deposit insurance can result in moral hazard and can increase bank risk-taking."

FDIC Alert! FDIC Releases Comprehensive Overview of Deposit Insurance System, Including Options for Deposit Insurance Reform: "Deposit insurance can result in moral hazard and can increase bank risk-taking."

https://www.fdic.gov/analysis/options-deposit-insurance-reforms/report/options-deposit-insurance-reform-full.pdf Full Report * Table of Contents * Section 1: Executive Summary Section 2: Introduction and Background * Introduction * Background Section 3: History of Deposit Insurance in the U.S. * The History of FDIC Insurance Coverage Limits * The Transaction Account Guarantee Program * Composition of Deposits

The FDIC and JP Morgan entered into a loss-share transaction on single family, residential and commercial loans it purchased of the former First Republic Bank.

The FDIC will share in the losses and potential recoveries on the loans covered by the loss–share agreement with JP Morgan. https://www.reddit.com/r/Superstonk/comments/134iami/fdic_alert_jpmorgan_chase_bank_national/ Loss-share transaction: Under an SLA, the FDIC absorbs a portion of the loss on

FDIC board member Jonathan McKernan: "We should avoid the temptation to pile on yet more prescriptive regulation or otherwise push responsible risk taking out of the banking system."

"Instead, we should acknowledge that bank failures are inevitable in a dynamic and innovative financial system." Source: https://www.fdic.gov/news/speeches/2023/spmay0123.html I am pleased we were able to deal with First Republic’s failure without using the FDIC’s emergency powers. It is

FDIC Alert! JPMorgan Chase Bank, National Association, Columbus, Ohio Assumes All the Deposits of First Republic Bank, San Francisco, California. FDIC entering loss-share transaction agreement to share the losses with JP Morgan.

Source: https://www.fdic.gov/news/press-releases/2023/pr23034.html First Republic Bank, San Francisco, California, was closed today by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect depositors, the FDIC is entering into a purchase and assumption

+$21 billion deposited in commercial banks in the last week (April 12th-April 19h). Since 2/22/2023, $492 billion in deposits have been pulled. $960 billion in deposits has been pulled in the last year.

https://fred.stlouisfed.org/series/DPSACBW027SBOG Domestically chartered commercial banks divested $87 billion in assets to nonbank institutions in the week ending March 29, 2023. The major asset item affected was the following: securities, $87 billion. Domestically chartered commercial banks divested $87 billion in assets to nonbank institutions in the

Federal Reserve Alert! Sunshine Meeting Notice for a CLOSED meeting under Expedited Procedures of the Board of Governors of the Federal Reserve System at 10:00 a.m. on Tuesday, May 2, 2023.

Matter considered: Discussion of Monetary Policy Issues https://www.federalreserve.gov/aboutthefed/boardmeetings/20230502closed.htm TLDRS: * A closed meeting of the Board of Governors of the Federal Reserve System will be held under expedited procedures at 10 a.m. on Tuesday, May 2, 2023. * Matter(s) considered: Discussion of Monetary

The FDIC admits to being asleep at the wheel regulating Signature Bank! How many more banks should the FDIC escalated supervisory actions sooner on? At what point should supervisory action be escalated for First Republic?

Source: https://www.fdic.gov/news/press-releases/2023/pr23033a.pdf Reddit post with discussion: https://www.reddit.com/r/Superstonk/comments/1322q1f/fdic_releases_report_detailing_supervision_of_the/ The Fed admits it is asleep at the wheel as well: Reddit Post