Eleven of the nation's biggest banks rescued regional lender First Republic Bank with a $30 billion bailout after questions about the San Francisco-based bank caused its stock price to tumble this week. CBS News congressional correspondent Scott MacFarlane reports. #news #banking #economy Each weekday morning, "CBS Mornings” co-hosts Gayle King, Tony Dokoupil and Nate Burleson bring you the latest breaking news, smart conversation and in-depth feature reporting. "CBS Mornings" airs weekdays at 7 a.m. on CBS and stream it at 8 a.m. ET on the CBS News app. Subscribe to “CBS Mornings” on YouTube: Watch CBS News: Download the CBS News app: Follow "CBS Mornings" on Instagram: Like "CBS Mornings" on Facebook: Follow "CBS Mornings" on Twitter: Subscribe to our newsletter: Try Paramount+ free: For video licensing inquiries, contact: licensing@veritone.com...(read more)
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First Republic Bank was in dire straits in the early months of 2020, and it seemed that the bank was headed towards bankruptcy. The bank, which had been struggling with debts and mounting losses, was on the verge of collapse, with its customers fearing that they would lose their savings and investments. However, the big banks came to the rescue of First Republic Bank when they put together a massive $30 billion bailout package. The package was aimed at helping the bank work through its financial problems and return to profitability in the future. The package was made up of loans, guarantees, and other forms of financial support, and was provided by eleven of the largest banks in the United States. The banks involved were Bank of America, Wells Fargo, JPMorgan Chase, Citigroup, Goldman Sachs, Morgan Stanley, Barclays, Credit Suisse, Deutsche Bank, UBS, and HSBC. The bailout was a clear indication of the financial industry’s willingness to support its own, and the banks’ decision to throw their weight behind First Republic Bank was seen as a significant vote of confidence in the bank and its future prospects. It is worth noting that First Republic Bank is not the first bank to receive such support. In the aftermath of the 2008 financial crisis, numerous banks received bailout packages from the government in order to avoid a complete collapse of the financial system. Although the $30 billion bailout package provided to First Republic Bank was not provided by the government, it was nonetheless a clear indication of the banking industry’s continued commitment to mutual support and assistance, particularly in times of financial distress. Critics of such bailouts argue that they create a moral hazard, essentially incentivizing banks to take on excessive risk knowing that they will be bailed out if things go wrong. However, supporters of bailouts argue that they are necessary to prevent the collapse of the financial system and the enormous economic fallout that would result. In the case of First Republic Bank, it remains to be seen whether the bailout will ultimately prove successful. However, the fact that the bank has received such a significant show of support from its peers bodes well for its future prospects, and provides hope that it will be able to weather the storm and emerge stronger in the longer term. https://inflationprotection.org/first-republic-bank-saved-by-30-billion-bailout-from-11-major-banks/?feed_id=84281&_unique_id=642b56ec51b4d #Inflation #Retirement #GoldIRA #Wealth #Investing #cbs #economy #firstrepublicbank #money #news #SanFrancisco #stock #video #BankFailures #cbs #economy #firstrepublicbank #money #news #SanFrancisco #stock #video
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