The bank's collapse is the latest in a slew of other bank failures that began in March. Nevertheless, we're being told 'all is well' by the same government officials and politicians who assured us that nothing like this could happen again after major federal legislation was passed in the wake of the '08 near-collapse of the entire U.S. financial system.
Oh, and now, as then, banks are being propped up with your tax dollars, though JPMorgan Chase moved to purchase First Republic on Monday.
"Treasury is encouraged that this institution was resolved with the least cost to the Deposit Insurance Fund, and in a manner that protected all depositors," the Treasury Department said, according to FOX Business. "The banking system remains sound and resilient, and Americans should feel confident in the safety of their deposits and the ability of the banking system to fulfill its essential function of providing credit to businesses and families."
On Monday, the Federal Deposit Insurance Corporation (FDIC) approved JPMorgan Chase's $10.6 billion offer to acquire the assets of a San Francisco-based lender following the government's seizure of the failed bank over the weekend. This marks the third major U.S. financial institution to collapse in the last 60 days, the outlet reported.
However, deposits in First Republic Bank exceeding the $250,000 FDIC insurance limit were not covered. Last week, the bank faced significant pressure after reporting over $100 billion in outflows during the first quarter and exploring possible solutions. Since the failures of Silicon Valley Bank and Signature Bank in early March, First Republic has been struggling and was viewed as the bank at the highest risk of collapse, FOX Business continued.
"The rescue comes less than two months after a deposit flight from U.S. lenders forced the Federal Reserve to step in with emergency measures to stabilize markets," the outlet's report added.
Meanwhile on Monday, President Joe Biden -- who literally has no clue what's going on around him -- was trotted out by his handlers to claim that the FDIC's decision to allow JPMorgan Chase Bank to take over all deposits of First Republic Bank will guarantee U.S. banking system is "safe and sound."
"I am pleased to say that the regulators have taken action to facilitate the sale of First Republic Bank and ensure that all depositors are protected and the taxpayers are not on the hook," Biden said.
"These actions are going to make sure that the banking system is safe and sound, and that includes protecting small businesses across the country who need to make payroll for workers and their small businesses," the president claimed.
Mind you, banks were not failing on Donald Trump's watch, but then again, our economy was not crippled by inflation Biden can't seem to fix and a credit crunch due to high-interest rates imposed by the Federal Reserve -- to de-inflate Biden's economy.
"Going forward, I've called on Congress to give regulators the tools to hold bank executives accountable, and I've called on regulators to strengthen regulations and supervision of large and regional banks," Biden continued. "And, folks, we have to make sure that we're not back in this position again. And I think we're well on our way to be able to make that assurance."
Again, Congress passed, and Joe Biden's presidential partner, Barack Obama, signed a law 'giving regulators the tools to hold bank executives accountable' and 'strengthen regulations and supervision of large regional banks.' That law and the regulations it imposed (including the creation of the Consumer Financial Protection Bureau) failed miserably to keep financial institutions from failing in the first place.
Our systems don't work. The federal government is far too big to function properly. And more banks are going to fail.