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A comment on JPMorgan Chase Bank Assumes All the Deposits of First Republic Bank. Parent comment

Re:JPMorgan Chase Bank Assumes All the Deposits of First Rep... by JumpCrisscross on Monday May 01, 2023 @05:09AM (#35770547)
> the government isn't taking responsibility

Ish. The loss-sharing transaction does involve the FDIC taking risk [1]. They claim they will settle up actual losses with special assessments on their members. And there may be no losses at all. But there is definitely risk being assumed by the FDIC, an entity backed by the full faith and credit of the United States.

It also looks like the FDIC is providing JPMorgan with a $50bn term loan [2]. (Shout out to snake_doc [3].)

[1] https://www.fdic.gov/resources/resolutions/bank-failures/fai...

[2] https://www.jpmorganchase.com/ir/news/2023/jpmc-acquires-sub...

[3] https://news.ycombinator.com/item?id=35770684

[ Parent | on HN ]
Re:JPMorgan Chase Bank Assumes All the Deposits of First Rep... by aero-glide2 on Monday May 01, 2023 @06:34AM (#35770993)
"The FDIC is not supported by public funds; member banks' insurance dues are its primary source of funding."
[ Parent | on HN ]
Re:JPMorgan Chase Bank Assumes All the Deposits of First Rep... by ceejayoz on Monday May 01, 2023 @07:39AM (#35771435)
The FDIC is not normally supported by public funds.

If it ran out of money, it's nearly certain the government would step in to cover the shortfall.

[ Parent | on HN ]