by Michael

Is one other domino about to fall?  Our system was greatly shaken when Silicon Valley Bank and Signature Bank suddenly collapsed, but we appear to have weathered that storm.  But what is going to occur if a good larger bank goes under?  As of March thirty first, First Republic had roughly 290 billion dollars in assets, and that makes it much larger than Silicon Valley Bank was when it finally imploded.  A 30 billion dollar rescue plan that was swiftly put together last month was alleged to stabilize First Republic, but that hasn’t worked.  On Tuesday, First Republic shares fell by about 50 percent after the general public learned that “customers withdrew greater than $100 billion during last month’s crisis”…

First Republic Bank’s shares plunged 50 percent after a ‘troubling’ earnings call where company executives refused to reply questions.

The stock dropped Tuesday after it emerged that customers withdrew greater than $100 billion during last month’s crisis, with fears swirling that it could possibly be the third bank to fail in quick succession after the collapse of Silicon Valley Bank and Signature Bank.

Unfortunately for First Republic, the carnage continued on Wednesday.

Shares of First Republic were down one other 29.75 percent, and to date this 12 months the stock price has fallen by a complete of greater than 95 percent.

Let me attempt to put this into perspective.

On February 2nd, First Republic stock closed at $147.00.

Today, it closed at $5.69.

That’s what a collapse looks like.

The explanation why this is going on is because costumers have been pulling their money out of First Republic at a pace that is totally staggering.  In truth, it’s being reported that First Republic lost 40 percent of their total deposits in the primary quarter alone…

This week’s drop for First Republic comes after the San Francisco-based lender late Monday said it lost roughly 40% of its deposits in the primary quarter. First Republic was seen by customers and investors alike as a dangerous bank after the collapse last month of Silicon Valley Bank, which had the same financial profile.

And if 11 of the biggest banks within the country had not agreed to collectively deposit 30 billion dollars of their very own money in First Republic last month, that figure would have been closer to 50 percent…

But those deposits include the $30 billion that 11 large banks deposited on the bank in March to prop it up and keep contagion from spreading.

Without this influx of $30 billion, deposits would have dropped by 50%. So this was really nip and tuck.

Unfortunately, that rescue plan was not nearly large enough, and so now First Republic plans to beg those banks for much more help…

One of the best hope for avoiding a collapse of ailing lender First Republic hinges on how persuasive one group of bankers may be with one other group of bankers.

Advisors to First Republic will try and cajole the large U.S. banks who’ve already propped it up into doing another favor, CNBC has learned.

The pitch will go something like this, in response to bankers with knowledge of the situation: Purchase bonds from First Republic at above-market rates for a complete lack of a couple of billion dollars – or face roughly $30 billion in Federal Deposit Insurance Corp. fees when First Republic fails.

Ouch.

I believe that those large banks can be quite silly to throw more good money into the First Republic black hole, but we will see what happens.

Along with pleading for assistance, First Republic also plans to put off hundreds of employees…

The bank says it plans to dump unprofitable assets, including the low-interest mortgages that it provided to wealthy clients. It also announced plans to put off as much as 1 / 4 of its workforce, which totaled about 7,200 employees at the top of 2022.

Will all of this be enough to show First Republic around?

After all not.

As one expert explained, if First Republic still had any good options left “they’d have pursued them already”…

Kathryn Judge, who works as an analyst at Columbia Law School, said that there is no such thing as a easy solution for First Republic.

‘If there have been attractive options, they’d have pursued them already,’ she told the Times.

Meanwhile, the general economy continues to deteriorate throughout us.

On Wednesday, Amazon conducted layoffs of their cloud computing and human resources divisions.  Sadly, these recent job cuts are only the newest wave in “the biggest layoffs in Amazon’s 29-year history”…

The layoffs are a part of the previously announced job cuts which might be expected to affect 9,000 employees. Last week, Amazon laid off some employees in its promoting unit, and it has let go of staffers in its video games and Twitch livestreaming units in recent weeks.

Amazon wrapped up a separate round of cuts earlier this 12 months that affected roughly 18,000 employees. Combined with the cuts this month, it marks the biggest layoffs in Amazon’s 29-year history.

Amazon is one among the wealthiest and most prosperous firms in the whole country.

In the event that they have decided that it’s needed to conduct multiple mass layoffs since the economic outlook is so grim, what sort of signal does that send to everyone else?

In recent months, Google, Microsoft, Disney, Walmart and countless other large corporations have ruthlessly pruned their payrolls.

But don’t worry.

Joe Biden says that the economy goes to be just high quality.

You think him, don’t you?

Don’t let anyone idiot you.

The economic meltdown that we’ve got been waiting for is here, and it’s going to be incredibly painful.