Following the second largest bank failure in U.S. history, First Republic Bank has been sold to J.P. Morgan. CNBC Senior Markets Correspondent Dominic Chu, NBC News White House Correspondent Monica Alba, and Wall Street Journal Chief Economics Correspondent Nick Timiraos join Andrea Mitchell to react. “We had an earthquake when Silicon Valley Bank failed in mid March, and earthquakes can destabilize other buildings, they can weaken other buildings around the epicenter of that quake, and that's what happened here,” says Timiraos. “When they reported earnings last week, and they made clear the extent of just how much money had gone out the door, after the failure of SVB, people began to say ‘wait a minute, is this bank really viable?’” » Subscribe to MSNBC: Follow MSNBC Show Blogs MaddowBlog: ReidOut Blog: MSNBC delivers breaking news, in-depth analysis of politics headlines, as well as commentary and informed perspectives. Find video clips and segments from The Rachel Maddow Show, Morning Joe, The Beat with Ari Melber, Deadline: White House, The ReidOut, All In, Last Word, 11th Hour, and Alex Wagner who brings her breadth of reporting experience to MSNBC primetime. Watch “Alex Wagner Tonight” Tuesday through Friday at 9pm Eastern. Connect with MSNBC Online Visit msnbc.com: Subscribe to the MSNBC Daily Newsletter: MSNBC.com/NewslettersYouTube Find MSNBC on Facebook: Follow MSNBC on Twitter: Follow MSNBC on Instagram: #FirstRepublicBank #SVB #Banking...(read more)
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The financial industry was rocked recently by the news of the First Republic Bank and SVB failures. These two banks are among the most highly respected and trusted financial institutions in the United States, and their collapse has sent shockwaves throughout the country. The First Republic Bank failure was particularly surprising, as the bank had been seen as one of the most stable and well-managed banks in the industry. However, it appears that the bank was destabilized by a seismic financial event that originated elsewhere in the industry - specifically, the SVB failure. Nick Timiraos, a respected financial journalist and analyst, has been closely following these events and has provided valuable insight into what caused the failures and what their implications might be for the broader financial system. According to Timiraos, the SVB failure had a domino effect on the wider financial industry. The bank's collapse sent shockwaves through the market, causing other banks to rethink their positions and make hasty decisions. This in turn put pressure on the First Republic Bank, causing it to buckle under the strain and ultimately fail. The SVB failure was caused by a variety of factors, including a combination of bad loans, poor risk management, and a lack of oversight by regulators. However, the deeper issue at play here is the structural instability of the financial system itself. As Timiraos explains, the current system is highly interconnected, with a large number of banks and financial institutions relying on each other for support and stability. When one bank fails, it can trigger a chain reaction that destabilizes the entire system. This was certainly the case with the SVB and First Republic Bank failures, and it underscores the need for greater oversight and regulation in the financial industry. Fortunately, there are steps that can be taken to address these issues. First and foremost, regulators need to take a more proactive approach to identifying and addressing risk in the financial industry. This means improving oversight and increasing transparency, so that both regulators and investors have a better idea of what's going on. Additionally, banks and other financial institutions need to be more accountable for their actions. This means taking responsibility for their mistakes, rather than shifting the blame to others or trying to hide their failures. Ultimately, the SVB and First Republic Bank failures have highlighted some of the deep-seated issues in the financial industry, but they have also provided an opportunity for change. By taking a more proactive approach to oversight and accountability, regulators and financial institutions can work together to build a more stable and resilient financial system for the future. https://inflationprotection.org/svb-failure-gives-rise-to-instability-in-first-republic-bank-nick-timiraos/?feed_id=100682&_unique_id=646dcb749e7e6 #Inflation #Retirement #GoldIRA #Wealth #Investing #AndreaMitchellReports #BankFailures #AndreaMitchellReports
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