What First Republic's results mean for the regional bank trade, according to Wall Street
CNBCMAY 2023
First Republic is in a hot mess right now, but it's not entirely the bank's fault. Its high-net-worth depositors were spooked by the fall of Silicon Valley Bank — a similar midsized, Bay Area lender that catered to a similarly wealthy clientele, which caused a run by rapidly pulling uninsured funds. Thankfully several major Wall Street banks have deposited over $30B in funds into the bank, effectively saving it and protecting a huge part of the US economy.
The US is divesting from working people and is instead investing in banks and venture capitalists. In reality, banks don't keep money safe, they gamble with it. Wall Street risks the money of working Americans time and time again and, when this strategy inevitably goes wrong, the government bails them out. The system needs to change.