Big Banks Agree to Historic $30B Deposit Injection in First Republic

Re:Big Banks Agree to Historic $30B Deposit Injection in Fir... by pjc50 on Friday March 17, 2023 @08:12AM (#35196009)

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!

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Re:Big Banks Agree to Historic $30B Deposit Injection in Fir... by twoodfin on Friday March 17, 2023 @08:18AM (#35196072)

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

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Re:Big Banks Agree to Historic $30B Deposit Injection in Fir... by gilrain on Friday March 17, 2023 @08:40AM (#35196319)

It’s only antitrust if it’s anticompetitive.

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Re:Big Banks Agree to Historic $30B Deposit Injection in Fir... by robertlagrant on Friday March 17, 2023 @08:25AM (#35196144)

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

What concern, exactly?

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Re:Big Banks Agree to Historic $30B Deposit Injection in Fir... by twoodfin on Friday March 17, 2023 @08:39AM (#35196305)

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”.

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Re:Big Banks Agree to Historic $30B Deposit Injection in Fir... by ceejayoz on Friday March 17, 2023 @09:25AM (#35196767)

What constraint of trade results from this action?

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Re:Big Banks Agree to Historic $30B Deposit Injection in Fir... by scotty79 on Friday March 17, 2023 @09:36AM (#35196889)

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

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Re:Big Banks Agree to Historic $30B Deposit Injection in Fir... by robertlagrant on Friday March 17, 2023 @03:25PM (#35201681)

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.

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