Currently, the interested banks are evaluating options to see what they would like to bid for, one of the sources said, adding that it is likely that lenders will bid for all of FRC’s deposits, a sizable chunk of its assets and some of its liabilities.
The deposits are the bank’s liabilities……
The Federal Deposit Insurance Corporation has reportedly asked six banks to bid for the embattled lender.
Shares in First Republic plunged last week after it admitted customers had withdrawn $100m in deposits in March.
The BBC’s only out by three orders of magnitude…..
The BBC gets numbers wrong?
I don’t believe it. It’s our national broadcaster and required to give us true, factual information.
I work for it!
What’s an order of magnitude?
“What’s an order of magnitude?”
As I understand it, a zero, before or after the decimal point. If you write 100 when you meant to write 1,000 then you are out by one order of magnitude. So three orders of magnitude is a pretty massive error.
Could customers actually withdraw $100 billion fron FRB? Credit Suisse only suffered about $60 billion and they were a top tier bank.
If they foundered after losing only $100,000 then they really don’t matter and it’s not news.
$102 billion….
The Federal Deposit Insurance Corporation has reportedly asked six banks to bid for the embattled lender.
If that were to fail, FDIC would be on the hook for how much? (Asking on behalf of a broadcaster).
Depends. Can’t recall exactly but I have seen the figures. Insured deposits are $50 billion maybe. Uninsured (because over $250k) are $80 billion? Summat like that, maybe? FDIC can pay off the insured no sweat. But there’s a lot of political pressure to guarantee the uninsured at present as well. To stop further runs that it. Which is a lot more of a problem. Because one of the ways you pay the insured is by screwing the uninsured and if you can’t do that then it all gets more expensive.
$102 billion…
blimey!
https://www.youtube.com/watch?v=xE5klz0yUT0
OT
For those with a strong constitution someone’s started a Twitter thread of quotes from Jolyons book and they rival Spud in the lack self awareness and toe curling stakes.
https://twitter.com/robin_c_douglas/status/1652327327513149447?s=61&t=VX5cJ0-osgn_JSz7j-uowQ
BiND: An über narcissist speaks!
The deposits are the bank’s liabilities……
No doubt the arts grads see the deposits as the bank customers’ cash stashed in a suitcase under the CEO’s bed.
I see the BBC has edited this story, without any acknowledgement