I wouldn't rule it out.

But you can see how this works: because the FDIC intervened and gave 100% on SVB where perhaps it might only have been 95% otherwise, the banks are now able to privately assemble an intervention into First Direct, which is even cheaper because now FDIC don't have to intervene!

Somehow I doubt this was planned entirely privately. For one thing, absent a government nod, this kind of coordination raises serious antitrust concerns.

It’s only antitrust if it’s anticompetitive.

> For one thing, absent a government nod, this kind of coordination raises serious antitrust concerns

What concern, exactly?

Suppose that (and this is not that wild a hypothetical under the circumstances) First Republic had been contemplating, barring significant new deposits, selling to an up-and-coming midsized bank, and the larger banks did not collectively desire that outcome.

Their CEOs can’t sit around a table and discuss joint billion-dollar strategic action. It’s the definition of a “conspiracy in constraint of trade”.

What constraint of trade results from this action?

If appetite for deposits is satisfied by some ingroup then the bank doesn't have to compete for deposits on open market.

This would be an acquisition intention that's not been announced or registered already? Anything's possible, but it seems silly to worry about things like that.

In the event of a collapse of course the depositors will be made whole, especially after they've showed such courage.

Yellen says otherwise

And there is the government bail out...

So it's about as risky as bungee jumping 5cm high using a VR headset with 5 medics around you?

I agree. Either this will work, or the FED will step in and protect their member banks. Risk: zero.

Well it's non zero. If the banking system actually start collapsing the stock prices of these banks will also crash. I doubt their executives and other want that...