header banner
Default

Too-big-to-fail banks are growing thanks to assistance from the Fed


Table of Contents

    The acute phase of the deposit flight crisis has ended with the FDIC’s seizure of First Republic and sale to JPMorgan Chase. The events highlight how Fed policy has aided the biggest institutions. Still, expect commercial real estate to take center stage over deposit flight.

    On the eve of the Fed’s next policy statement, everyone in Washington is talking more about “too big to fail” than monetary policy. Why? In two words, First Republic. That’s because JPMorgan Chase, the nation’s largest bank, is acquiring the failed institution’s assets. After months in which deposits have fled smaller regional banks for their larger brethren, the takeover makes clear that the largest financial institutions have a great advantage right now. And that’s in large part because of the Fed.

    Sources


    Article information

    Author: Andrew Casey

    Last Updated: 1702246203

    Views: 1116

    Rating: 4.7 / 5 (43 voted)

    Reviews: 81% of readers found this page helpful

    Author information

    Name: Andrew Casey

    Birthday: 1978-12-03

    Address: 559 Jonathan Circle, Autumnland, GA 33302

    Phone: +4094971502123999

    Job: Article Writer

    Hobby: Cooking, Card Collecting, Gardening, Camping, Rowing, Skydiving, Swimming

    Introduction: My name is Andrew Casey, I am a steadfast, artistic, audacious, honest, persistent, expert, bold person who loves writing and wants to share my knowledge and understanding with you.