Per the report, as of Friday, the FDIC had yet to decide to place First Republic Bank under receivership after attempts to have a takeover from a consortium of big banks failed to materialize.<\/p>\n\n\n\n
The people familiar with the matter revealed to Bloomberg<\/a> that a group of 11 banks owning up to $30 billion in deposits with First Republic Bank were unable to make a joint investment that could save the bank.<\/p>\n\n\n\n It remains to be seen how competitive JPM\u2019s bid to take over the lender would be, considering the bank has already amassed over 10% of the nationwide deposits, making the firm ineligible per the regulatory requirements. In that case, according to experts, the regulators would have to make an exception.<\/p>\n","post_title":"JP Morgan, PNC Race To Acquire Troubled First Republic Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jp-morgan-pnc-race-to-acquire-troubled-first-republic-bank","to_ping":"","pinged":"","post_modified":"2023-04-30 16:53:28","post_modified_gmt":"2023-04-30 06:53:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11368","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Per the report, as of Friday, the FDIC had yet to decide to place First Republic Bank under receivership after attempts to have a takeover from a consortium of big banks failed to materialize.<\/p>\n\n\n\n The people familiar with the matter revealed to Bloomberg<\/a> that a group of 11 banks owning up to $30 billion in deposits with First Republic Bank were unable to make a joint investment that could save the bank.<\/p>\n\n\n\n It remains to be seen how competitive JPM\u2019s bid to take over the lender would be, considering the bank has already amassed over 10% of the nationwide deposits, making the firm ineligible per the regulatory requirements. In that case, according to experts, the regulators would have to make an exception.<\/p>\n","post_title":"JP Morgan, PNC Race To Acquire Troubled First Republic Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jp-morgan-pnc-race-to-acquire-troubled-first-republic-bank","to_ping":"","pinged":"","post_modified":"2023-04-30 16:53:28","post_modified_gmt":"2023-04-30 06:53:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11368","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Besides, First Republic\u2019s balance sheet comprises low-interest loans, including an extensive portfolio of jumbo mortgages extended to high-net-worth individuals, which have reportedly lost value since the Federal Reserve\u2019s borrowing rates hikes. <\/p>\n\n\n\n Per the report, as of Friday, the FDIC had yet to decide to place First Republic Bank under receivership after attempts to have a takeover from a consortium of big banks failed to materialize.<\/p>\n\n\n\n The people familiar with the matter revealed to Bloomberg<\/a> that a group of 11 banks owning up to $30 billion in deposits with First Republic Bank were unable to make a joint investment that could save the bank.<\/p>\n\n\n\n It remains to be seen how competitive JPM\u2019s bid to take over the lender would be, considering the bank has already amassed over 10% of the nationwide deposits, making the firm ineligible per the regulatory requirements. In that case, according to experts, the regulators would have to make an exception.<\/p>\n","post_title":"JP Morgan, PNC Race To Acquire Troubled First Republic Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jp-morgan-pnc-race-to-acquire-troubled-first-republic-bank","to_ping":"","pinged":"","post_modified":"2023-04-30 16:53:28","post_modified_gmt":"2023-04-30 06:53:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11368","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
FDIC was forced to intervene after First Republic\u2019s stock price dropped by up to 97%, leaving the company with slightly over $650 million in market valuation. The bank earlier revealed that it had lost almost 40% of its deposits partly due to panic withdrawals following the collapse of Silicon Valley Bank.<\/p>\n\n\n\n Besides, First Republic\u2019s balance sheet comprises low-interest loans, including an extensive portfolio of jumbo mortgages extended to high-net-worth individuals, which have reportedly lost value since the Federal Reserve\u2019s borrowing rates hikes. <\/p>\n\n\n\n Per the report, as of Friday, the FDIC had yet to decide to place First Republic Bank under receivership after attempts to have a takeover from a consortium of big banks failed to materialize.<\/p>\n\n\n\n The people familiar with the matter revealed to Bloomberg<\/a> that a group of 11 banks owning up to $30 billion in deposits with First Republic Bank were unable to make a joint investment that could save the bank.<\/p>\n\n\n\n It remains to be seen how competitive JPM\u2019s bid to take over the lender would be, considering the bank has already amassed over 10% of the nationwide deposits, making the firm ineligible per the regulatory requirements. In that case, according to experts, the regulators would have to make an exception.<\/p>\n","post_title":"JP Morgan, PNC Race To Acquire Troubled First Republic Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jp-morgan-pnc-race-to-acquire-troubled-first-republic-bank","to_ping":"","pinged":"","post_modified":"2023-04-30 16:53:28","post_modified_gmt":"2023-04-30 06:53:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11368","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
According to unnamed sources who shared information<\/a> with the Wall Street Journal, the FDIC had invited several lenders to submit their bids for the acquisition of the San Francisco-based bank by Sunday. From the received bids, JPM and PNC have reportedly been invited to the next level of the sale.<\/p>\n\n\n\n FDIC was forced to intervene after First Republic\u2019s stock price dropped by up to 97%, leaving the company with slightly over $650 million in market valuation. The bank earlier revealed that it had lost almost 40% of its deposits partly due to panic withdrawals following the collapse of Silicon Valley Bank.<\/p>\n\n\n\n Besides, First Republic\u2019s balance sheet comprises low-interest loans, including an extensive portfolio of jumbo mortgages extended to high-net-worth individuals, which have reportedly lost value since the Federal Reserve\u2019s borrowing rates hikes. <\/p>\n\n\n\n Per the report, as of Friday, the FDIC had yet to decide to place First Republic Bank under receivership after attempts to have a takeover from a consortium of big banks failed to materialize.<\/p>\n\n\n\n The people familiar with the matter revealed to Bloomberg<\/a> that a group of 11 banks owning up to $30 billion in deposits with First Republic Bank were unable to make a joint investment that could save the bank.<\/p>\n\n\n\n It remains to be seen how competitive JPM\u2019s bid to take over the lender would be, considering the bank has already amassed over 10% of the nationwide deposits, making the firm ineligible per the regulatory requirements. In that case, according to experts, the regulators would have to make an exception.<\/p>\n","post_title":"JP Morgan, PNC Race To Acquire Troubled First Republic Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jp-morgan-pnc-race-to-acquire-troubled-first-republic-bank","to_ping":"","pinged":"","post_modified":"2023-04-30 16:53:28","post_modified_gmt":"2023-04-30 06:53:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11368","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
JPMorgan Chase & Co. and PNC Financial Services Group Inc. are bidding to take over the assets of First Republic Bank from the Federal Deposit Insurance Corporation (FDIC).<\/p>\n\n\n\n According to unnamed sources who shared information<\/a> with the Wall Street Journal, the FDIC had invited several lenders to submit their bids for the acquisition of the San Francisco-based bank by Sunday. From the received bids, JPM and PNC have reportedly been invited to the next level of the sale.<\/p>\n\n\n\n FDIC was forced to intervene after First Republic\u2019s stock price dropped by up to 97%, leaving the company with slightly over $650 million in market valuation. The bank earlier revealed that it had lost almost 40% of its deposits partly due to panic withdrawals following the collapse of Silicon Valley Bank.<\/p>\n\n\n\n Besides, First Republic\u2019s balance sheet comprises low-interest loans, including an extensive portfolio of jumbo mortgages extended to high-net-worth individuals, which have reportedly lost value since the Federal Reserve\u2019s borrowing rates hikes. <\/p>\n\n\n\n Per the report, as of Friday, the FDIC had yet to decide to place First Republic Bank under receivership after attempts to have a takeover from a consortium of big banks failed to materialize.<\/p>\n\n\n\n The people familiar with the matter revealed to Bloomberg<\/a> that a group of 11 banks owning up to $30 billion in deposits with First Republic Bank were unable to make a joint investment that could save the bank.<\/p>\n\n\n\n It remains to be seen how competitive JPM\u2019s bid to take over the lender would be, considering the bank has already amassed over 10% of the nationwide deposits, making the firm ineligible per the regulatory requirements. In that case, according to experts, the regulators would have to make an exception.<\/p>\n","post_title":"JP Morgan, PNC Race To Acquire Troubled First Republic Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jp-morgan-pnc-race-to-acquire-troubled-first-republic-bank","to_ping":"","pinged":"","post_modified":"2023-04-30 16:53:28","post_modified_gmt":"2023-04-30 06:53:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11368","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
JPMorgan Chase & Co. and PNC Financial Services Group Inc. are bidding to take over the assets of First Republic Bank from the Federal Deposit Insurance Corporation (FDIC).<\/p>\n\n\n\n According to unnamed sources who shared information<\/a> with the Wall Street Journal, the FDIC had invited several lenders to submit their bids for the acquisition of the San Francisco-based bank by Sunday. From the received bids, JPM and PNC have reportedly been invited to the next level of the sale.<\/p>\n\n\n\n FDIC was forced to intervene after First Republic\u2019s stock price dropped by up to 97%, leaving the company with slightly over $650 million in market valuation. The bank earlier revealed that it had lost almost 40% of its deposits partly due to panic withdrawals following the collapse of Silicon Valley Bank.<\/p>\n\n\n\n Besides, First Republic\u2019s balance sheet comprises low-interest loans, including an extensive portfolio of jumbo mortgages extended to high-net-worth individuals, which have reportedly lost value since the Federal Reserve\u2019s borrowing rates hikes. <\/p>\n\n\n\n Per the report, as of Friday, the FDIC had yet to decide to place First Republic Bank under receivership after attempts to have a takeover from a consortium of big banks failed to materialize.<\/p>\n\n\n\n The people familiar with the matter revealed to Bloomberg<\/a> that a group of 11 banks owning up to $30 billion in deposits with First Republic Bank were unable to make a joint investment that could save the bank.<\/p>\n\n\n\n It remains to be seen how competitive JPM\u2019s bid to take over the lender would be, considering the bank has already amassed over 10% of the nationwide deposits, making the firm ineligible per the regulatory requirements. In that case, according to experts, the regulators would have to make an exception.<\/p>\n","post_title":"JP Morgan, PNC Race To Acquire Troubled First Republic Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jp-morgan-pnc-race-to-acquire-troubled-first-republic-bank","to_ping":"","pinged":"","post_modified":"2023-04-30 16:53:28","post_modified_gmt":"2023-04-30 06:53:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11368","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
JPMorgan Chase & Co. and PNC Financial Services Group Inc. are bidding to take over the assets of First Republic Bank from the Federal Deposit Insurance Corporation (FDIC).<\/p>\n\n\n\n According to unnamed sources who shared information<\/a> with the Wall Street Journal, the FDIC had invited several lenders to submit their bids for the acquisition of the San Francisco-based bank by Sunday. From the received bids, JPM and PNC have reportedly been invited to the next level of the sale.<\/p>\n\n\n\n FDIC was forced to intervene after First Republic\u2019s stock price dropped by up to 97%, leaving the company with slightly over $650 million in market valuation. The bank earlier revealed that it had lost almost 40% of its deposits partly due to panic withdrawals following the collapse of Silicon Valley Bank.<\/p>\n\n\n\n Besides, First Republic\u2019s balance sheet comprises low-interest loans, including an extensive portfolio of jumbo mortgages extended to high-net-worth individuals, which have reportedly lost value since the Federal Reserve\u2019s borrowing rates hikes. <\/p>\n\n\n\n Per the report, as of Friday, the FDIC had yet to decide to place First Republic Bank under receivership after attempts to have a takeover from a consortium of big banks failed to materialize.<\/p>\n\n\n\n The people familiar with the matter revealed to Bloomberg<\/a> that a group of 11 banks owning up to $30 billion in deposits with First Republic Bank were unable to make a joint investment that could save the bank.<\/p>\n\n\n\n It remains to be seen how competitive JPM\u2019s bid to take over the lender would be, considering the bank has already amassed over 10% of the nationwide deposits, making the firm ineligible per the regulatory requirements. In that case, according to experts, the regulators would have to make an exception.<\/p>\n","post_title":"JP Morgan, PNC Race To Acquire Troubled First Republic Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jp-morgan-pnc-race-to-acquire-troubled-first-republic-bank","to_ping":"","pinged":"","post_modified":"2023-04-30 16:53:28","post_modified_gmt":"2023-04-30 06:53:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11368","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
JPMorgan Chase & Co. and PNC Financial Services Group Inc. are bidding to take over the assets of First Republic Bank from the Federal Deposit Insurance Corporation (FDIC).<\/p>\n\n\n\n According to unnamed sources who shared information<\/a> with the Wall Street Journal, the FDIC had invited several lenders to submit their bids for the acquisition of the San Francisco-based bank by Sunday. From the received bids, JPM and PNC have reportedly been invited to the next level of the sale.<\/p>\n\n\n\n FDIC was forced to intervene after First Republic\u2019s stock price dropped by up to 97%, leaving the company with slightly over $650 million in market valuation. The bank earlier revealed that it had lost almost 40% of its deposits partly due to panic withdrawals following the collapse of Silicon Valley Bank.<\/p>\n\n\n\n Besides, First Republic\u2019s balance sheet comprises low-interest loans, including an extensive portfolio of jumbo mortgages extended to high-net-worth individuals, which have reportedly lost value since the Federal Reserve\u2019s borrowing rates hikes. <\/p>\n\n\n\n Per the report, as of Friday, the FDIC had yet to decide to place First Republic Bank under receivership after attempts to have a takeover from a consortium of big banks failed to materialize.<\/p>\n\n\n\n The people familiar with the matter revealed to Bloomberg<\/a> that a group of 11 banks owning up to $30 billion in deposits with First Republic Bank were unable to make a joint investment that could save the bank.<\/p>\n\n\n\n It remains to be seen how competitive JPM\u2019s bid to take over the lender would be, considering the bank has already amassed over 10% of the nationwide deposits, making the firm ineligible per the regulatory requirements. In that case, according to experts, the regulators would have to make an exception.<\/p>\n","post_title":"JP Morgan, PNC Race To Acquire Troubled First Republic Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jp-morgan-pnc-race-to-acquire-troubled-first-republic-bank","to_ping":"","pinged":"","post_modified":"2023-04-30 16:53:28","post_modified_gmt":"2023-04-30 06:53:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11368","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
First Republic's failure occurred less than two months after Silicon Valley Bank and Signature Bank's collapses, marking a turbulent period for the US banking sector. Despite the high-profile nature of these failures, JPMorgan was not involved in this particular case.<\/p>\n","post_title":"First Republic Ex-employees\u2019 $150M Lawsuit against FDIC Dismissed","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"first-republic-ex-employees-150m-lawsuit-against-fdic-dismissed","to_ping":"","pinged":"","post_modified":"2024-07-16 05:15:09","post_modified_gmt":"2024-07-15 19:15:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17803","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11368,"post_author":"13","post_date":"2023-04-30 16:50:54","post_date_gmt":"2023-04-30 06:50:54","post_content":"\n JPMorgan Chase & Co. and PNC Financial Services Group Inc. are bidding to take over the assets of First Republic Bank from the Federal Deposit Insurance Corporation (FDIC).<\/p>\n\n\n\n According to unnamed sources who shared information<\/a> with the Wall Street Journal, the FDIC had invited several lenders to submit their bids for the acquisition of the San Francisco-based bank by Sunday. From the received bids, JPM and PNC have reportedly been invited to the next level of the sale.<\/p>\n\n\n\n FDIC was forced to intervene after First Republic\u2019s stock price dropped by up to 97%, leaving the company with slightly over $650 million in market valuation. The bank earlier revealed that it had lost almost 40% of its deposits partly due to panic withdrawals following the collapse of Silicon Valley Bank.<\/p>\n\n\n\n Besides, First Republic\u2019s balance sheet comprises low-interest loans, including an extensive portfolio of jumbo mortgages extended to high-net-worth individuals, which have reportedly lost value since the Federal Reserve\u2019s borrowing rates hikes. <\/p>\n\n\n\n Per the report, as of Friday, the FDIC had yet to decide to place First Republic Bank under receivership after attempts to have a takeover from a consortium of big banks failed to materialize.<\/p>\n\n\n\n The people familiar with the matter revealed to Bloomberg<\/a> that a group of 11 banks owning up to $30 billion in deposits with First Republic Bank were unable to make a joint investment that could save the bank.<\/p>\n\n\n\n It remains to be seen how competitive JPM\u2019s bid to take over the lender would be, considering the bank has already amassed over 10% of the nationwide deposits, making the firm ineligible per the regulatory requirements. In that case, according to experts, the regulators would have to make an exception.<\/p>\n","post_title":"JP Morgan, PNC Race To Acquire Troubled First Republic Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jp-morgan-pnc-race-to-acquire-troubled-first-republic-bank","to_ping":"","pinged":"","post_modified":"2023-04-30 16:53:28","post_modified_gmt":"2023-04-30 06:53:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11368","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Lawyers representing the former First Republic employees did not immediately respond to requests for comment. Similarly, an FDIC spokesman declined to comment on the ruling. The case highlights the tension between federal regulatory authority and the rights of individuals affected by bank failures.<\/p>\n\n\n\n First Republic's failure occurred less than two months after Silicon Valley Bank and Signature Bank's collapses, marking a turbulent period for the US banking sector. Despite the high-profile nature of these failures, JPMorgan was not involved in this particular case.<\/p>\n","post_title":"First Republic Ex-employees\u2019 $150M Lawsuit against FDIC Dismissed","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"first-republic-ex-employees-150m-lawsuit-against-fdic-dismissed","to_ping":"","pinged":"","post_modified":"2024-07-16 05:15:09","post_modified_gmt":"2024-07-15 19:15:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17803","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11368,"post_author":"13","post_date":"2023-04-30 16:50:54","post_date_gmt":"2023-04-30 06:50:54","post_content":"\n JPMorgan Chase & Co. and PNC Financial Services Group Inc. are bidding to take over the assets of First Republic Bank from the Federal Deposit Insurance Corporation (FDIC).<\/p>\n\n\n\n According to unnamed sources who shared information<\/a> with the Wall Street Journal, the FDIC had invited several lenders to submit their bids for the acquisition of the San Francisco-based bank by Sunday. From the received bids, JPM and PNC have reportedly been invited to the next level of the sale.<\/p>\n\n\n\n FDIC was forced to intervene after First Republic\u2019s stock price dropped by up to 97%, leaving the company with slightly over $650 million in market valuation. The bank earlier revealed that it had lost almost 40% of its deposits partly due to panic withdrawals following the collapse of Silicon Valley Bank.<\/p>\n\n\n\n Besides, First Republic\u2019s balance sheet comprises low-interest loans, including an extensive portfolio of jumbo mortgages extended to high-net-worth individuals, which have reportedly lost value since the Federal Reserve\u2019s borrowing rates hikes. <\/p>\n\n\n\n Per the report, as of Friday, the FDIC had yet to decide to place First Republic Bank under receivership after attempts to have a takeover from a consortium of big banks failed to materialize.<\/p>\n\n\n\n The people familiar with the matter revealed to Bloomberg<\/a> that a group of 11 banks owning up to $30 billion in deposits with First Republic Bank were unable to make a joint investment that could save the bank.<\/p>\n\n\n\n It remains to be seen how competitive JPM\u2019s bid to take over the lender would be, considering the bank has already amassed over 10% of the nationwide deposits, making the firm ineligible per the regulatory requirements. In that case, according to experts, the regulators would have to make an exception.<\/p>\n","post_title":"JP Morgan, PNC Race To Acquire Troubled First Republic Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jp-morgan-pnc-race-to-acquire-troubled-first-republic-bank","to_ping":"","pinged":"","post_modified":"2023-04-30 16:53:28","post_modified_gmt":"2023-04-30 06:53:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11368","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
First Republic Bank, which catered to wealthy customers and had $229 billion in assets, failed on May 1, 2023. The collapse was the largest US bank failure since the 2008 financial crisis, triggered by a series of Federal Reserve interest rate increases that caused significant losses in the bank's investment portfolio and prompted depositors to withdraw their funds.<\/p>\n\n\n\n Lawyers representing the former First Republic employees did not immediately respond to requests for comment. Similarly, an FDIC spokesman declined to comment on the ruling. The case highlights the tension between federal regulatory authority and the rights of individuals affected by bank failures.<\/p>\n\n\n\n First Republic's failure occurred less than two months after Silicon Valley Bank and Signature Bank's collapses, marking a turbulent period for the US banking sector. Despite the high-profile nature of these failures, JPMorgan was not involved in this particular case.<\/p>\n","post_title":"First Republic Ex-employees\u2019 $150M Lawsuit against FDIC Dismissed","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"first-republic-ex-employees-150m-lawsuit-against-fdic-dismissed","to_ping":"","pinged":"","post_modified":"2024-07-16 05:15:09","post_modified_gmt":"2024-07-15 19:15:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17803","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11368,"post_author":"13","post_date":"2023-04-30 16:50:54","post_date_gmt":"2023-04-30 06:50:54","post_content":"\n JPMorgan Chase & Co. and PNC Financial Services Group Inc. are bidding to take over the assets of First Republic Bank from the Federal Deposit Insurance Corporation (FDIC).<\/p>\n\n\n\n According to unnamed sources who shared information<\/a> with the Wall Street Journal, the FDIC had invited several lenders to submit their bids for the acquisition of the San Francisco-based bank by Sunday. From the received bids, JPM and PNC have reportedly been invited to the next level of the sale.<\/p>\n\n\n\n FDIC was forced to intervene after First Republic\u2019s stock price dropped by up to 97%, leaving the company with slightly over $650 million in market valuation. The bank earlier revealed that it had lost almost 40% of its deposits partly due to panic withdrawals following the collapse of Silicon Valley Bank.<\/p>\n\n\n\n Besides, First Republic\u2019s balance sheet comprises low-interest loans, including an extensive portfolio of jumbo mortgages extended to high-net-worth individuals, which have reportedly lost value since the Federal Reserve\u2019s borrowing rates hikes. <\/p>\n\n\n\n Per the report, as of Friday, the FDIC had yet to decide to place First Republic Bank under receivership after attempts to have a takeover from a consortium of big banks failed to materialize.<\/p>\n\n\n\n The people familiar with the matter revealed to Bloomberg<\/a> that a group of 11 banks owning up to $30 billion in deposits with First Republic Bank were unable to make a joint investment that could save the bank.<\/p>\n\n\n\n It remains to be seen how competitive JPM\u2019s bid to take over the lender would be, considering the bank has already amassed over 10% of the nationwide deposits, making the firm ineligible per the regulatory requirements. In that case, according to experts, the regulators would have to make an exception.<\/p>\n","post_title":"JP Morgan, PNC Race To Acquire Troubled First Republic Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jp-morgan-pnc-race-to-acquire-troubled-first-republic-bank","to_ping":"","pinged":"","post_modified":"2023-04-30 16:53:28","post_modified_gmt":"2023-04-30 06:53:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11368","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
First Republic Bank, which catered to wealthy customers and had $229 billion in assets, failed on May 1, 2023. The collapse was the largest US bank failure since the 2008 financial crisis, triggered by a series of Federal Reserve interest rate increases that caused significant losses in the bank's investment portfolio and prompted depositors to withdraw their funds.<\/p>\n\n\n\n Lawyers representing the former First Republic employees did not immediately respond to requests for comment. Similarly, an FDIC spokesman declined to comment on the ruling. The case highlights the tension between federal regulatory authority and the rights of individuals affected by bank failures.<\/p>\n\n\n\n First Republic's failure occurred less than two months after Silicon Valley Bank and Signature Bank's collapses, marking a turbulent period for the US banking sector. Despite the high-profile nature of these failures, JPMorgan was not involved in this particular case.<\/p>\n","post_title":"First Republic Ex-employees\u2019 $150M Lawsuit against FDIC Dismissed","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"first-republic-ex-employees-150m-lawsuit-against-fdic-dismissed","to_ping":"","pinged":"","post_modified":"2024-07-16 05:15:09","post_modified_gmt":"2024-07-15 19:15:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17803","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11368,"post_author":"13","post_date":"2023-04-30 16:50:54","post_date_gmt":"2023-04-30 06:50:54","post_content":"\n JPMorgan Chase & Co. and PNC Financial Services Group Inc. are bidding to take over the assets of First Republic Bank from the Federal Deposit Insurance Corporation (FDIC).<\/p>\n\n\n\n According to unnamed sources who shared information<\/a> with the Wall Street Journal, the FDIC had invited several lenders to submit their bids for the acquisition of the San Francisco-based bank by Sunday. From the received bids, JPM and PNC have reportedly been invited to the next level of the sale.<\/p>\n\n\n\n FDIC was forced to intervene after First Republic\u2019s stock price dropped by up to 97%, leaving the company with slightly over $650 million in market valuation. The bank earlier revealed that it had lost almost 40% of its deposits partly due to panic withdrawals following the collapse of Silicon Valley Bank.<\/p>\n\n\n\n Besides, First Republic\u2019s balance sheet comprises low-interest loans, including an extensive portfolio of jumbo mortgages extended to high-net-worth individuals, which have reportedly lost value since the Federal Reserve\u2019s borrowing rates hikes. <\/p>\n\n\n\n Per the report, as of Friday, the FDIC had yet to decide to place First Republic Bank under receivership after attempts to have a takeover from a consortium of big banks failed to materialize.<\/p>\n\n\n\n The people familiar with the matter revealed to Bloomberg<\/a> that a group of 11 banks owning up to $30 billion in deposits with First Republic Bank were unable to make a joint investment that could save the bank.<\/p>\n\n\n\n It remains to be seen how competitive JPM\u2019s bid to take over the lender would be, considering the bank has already amassed over 10% of the nationwide deposits, making the firm ineligible per the regulatory requirements. In that case, according to experts, the regulators would have to make an exception.<\/p>\n","post_title":"JP Morgan, PNC Race To Acquire Troubled First Republic Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jp-morgan-pnc-race-to-acquire-troubled-first-republic-bank","to_ping":"","pinged":"","post_modified":"2023-04-30 16:53:28","post_modified_gmt":"2023-04-30 06:53:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11368","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
See Related:<\/em><\/strong> Binance Faces Major Legal Hurdle As Judge Upholds Key SEC Charges<\/a><\/p>\n\n\n\n First Republic Bank, which catered to wealthy customers and had $229 billion in assets, failed on May 1, 2023. The collapse was the largest US bank failure since the 2008 financial crisis, triggered by a series of Federal Reserve interest rate increases that caused significant losses in the bank's investment portfolio and prompted depositors to withdraw their funds.<\/p>\n\n\n\n Lawyers representing the former First Republic employees did not immediately respond to requests for comment. Similarly, an FDIC spokesman declined to comment on the ruling. The case highlights the tension between federal regulatory authority and the rights of individuals affected by bank failures.<\/p>\n\n\n\n First Republic's failure occurred less than two months after Silicon Valley Bank and Signature Bank's collapses, marking a turbulent period for the US banking sector. Despite the high-profile nature of these failures, JPMorgan was not involved in this particular case.<\/p>\n","post_title":"First Republic Ex-employees\u2019 $150M Lawsuit against FDIC Dismissed","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"first-republic-ex-employees-150m-lawsuit-against-fdic-dismissed","to_ping":"","pinged":"","post_modified":"2024-07-16 05:15:09","post_modified_gmt":"2024-07-15 19:15:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17803","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11368,"post_author":"13","post_date":"2023-04-30 16:50:54","post_date_gmt":"2023-04-30 06:50:54","post_content":"\n JPMorgan Chase & Co. and PNC Financial Services Group Inc. are bidding to take over the assets of First Republic Bank from the Federal Deposit Insurance Corporation (FDIC).<\/p>\n\n\n\n According to unnamed sources who shared information<\/a> with the Wall Street Journal, the FDIC had invited several lenders to submit their bids for the acquisition of the San Francisco-based bank by Sunday. From the received bids, JPM and PNC have reportedly been invited to the next level of the sale.<\/p>\n\n\n\n FDIC was forced to intervene after First Republic\u2019s stock price dropped by up to 97%, leaving the company with slightly over $650 million in market valuation. The bank earlier revealed that it had lost almost 40% of its deposits partly due to panic withdrawals following the collapse of Silicon Valley Bank.<\/p>\n\n\n\n Besides, First Republic\u2019s balance sheet comprises low-interest loans, including an extensive portfolio of jumbo mortgages extended to high-net-worth individuals, which have reportedly lost value since the Federal Reserve\u2019s borrowing rates hikes. <\/p>\n\n\n\n Per the report, as of Friday, the FDIC had yet to decide to place First Republic Bank under receivership after attempts to have a takeover from a consortium of big banks failed to materialize.<\/p>\n\n\n\n The people familiar with the matter revealed to Bloomberg<\/a> that a group of 11 banks owning up to $30 billion in deposits with First Republic Bank were unable to make a joint investment that could save the bank.<\/p>\n\n\n\n It remains to be seen how competitive JPM\u2019s bid to take over the lender would be, considering the bank has already amassed over 10% of the nationwide deposits, making the firm ineligible per the regulatory requirements. In that case, according to experts, the regulators would have to make an exception.<\/p>\n","post_title":"JP Morgan, PNC Race To Acquire Troubled First Republic Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jp-morgan-pnc-race-to-acquire-troubled-first-republic-bank","to_ping":"","pinged":"","post_modified":"2023-04-30 16:53:28","post_modified_gmt":"2023-04-30 06:53:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11368","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
The law referenced by Judge Gilliam allows the FDIC significant leeway in handling the receivership duties of failed banks. This law forecloses actions which seek to '\"restrain or affect'\" the FDIC in fulfilling its receivership duties,\" Gilliam stated. Interestingly, the dismissal was with prejudice, meaning the lawsuit cannot be brought again.<\/p>\n\n\n\n See Related:<\/em><\/strong> Binance Faces Major Legal Hurdle As Judge Upholds Key SEC Charges<\/a><\/p>\n\n\n\n First Republic Bank, which catered to wealthy customers and had $229 billion in assets, failed on May 1, 2023. The collapse was the largest US bank failure since the 2008 financial crisis, triggered by a series of Federal Reserve interest rate increases that caused significant losses in the bank's investment portfolio and prompted depositors to withdraw their funds.<\/p>\n\n\n\n Lawyers representing the former First Republic employees did not immediately respond to requests for comment. Similarly, an FDIC spokesman declined to comment on the ruling. The case highlights the tension between federal regulatory authority and the rights of individuals affected by bank failures.<\/p>\n\n\n\n First Republic's failure occurred less than two months after Silicon Valley Bank and Signature Bank's collapses, marking a turbulent period for the US banking sector. Despite the high-profile nature of these failures, JPMorgan was not involved in this particular case.<\/p>\n","post_title":"First Republic Ex-employees\u2019 $150M Lawsuit against FDIC Dismissed","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"first-republic-ex-employees-150m-lawsuit-against-fdic-dismissed","to_ping":"","pinged":"","post_modified":"2024-07-16 05:15:09","post_modified_gmt":"2024-07-15 19:15:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17803","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11368,"post_author":"13","post_date":"2023-04-30 16:50:54","post_date_gmt":"2023-04-30 06:50:54","post_content":"\n JPMorgan Chase & Co. and PNC Financial Services Group Inc. are bidding to take over the assets of First Republic Bank from the Federal Deposit Insurance Corporation (FDIC).<\/p>\n\n\n\n According to unnamed sources who shared information<\/a> with the Wall Street Journal, the FDIC had invited several lenders to submit their bids for the acquisition of the San Francisco-based bank by Sunday. From the received bids, JPM and PNC have reportedly been invited to the next level of the sale.<\/p>\n\n\n\n FDIC was forced to intervene after First Republic\u2019s stock price dropped by up to 97%, leaving the company with slightly over $650 million in market valuation. The bank earlier revealed that it had lost almost 40% of its deposits partly due to panic withdrawals following the collapse of Silicon Valley Bank.<\/p>\n\n\n\n Besides, First Republic\u2019s balance sheet comprises low-interest loans, including an extensive portfolio of jumbo mortgages extended to high-net-worth individuals, which have reportedly lost value since the Federal Reserve\u2019s borrowing rates hikes. <\/p>\n\n\n\n Per the report, as of Friday, the FDIC had yet to decide to place First Republic Bank under receivership after attempts to have a takeover from a consortium of big banks failed to materialize.<\/p>\n\n\n\n The people familiar with the matter revealed to Bloomberg<\/a> that a group of 11 banks owning up to $30 billion in deposits with First Republic Bank were unable to make a joint investment that could save the bank.<\/p>\n\n\n\n It remains to be seen how competitive JPM\u2019s bid to take over the lender would be, considering the bank has already amassed over 10% of the nationwide deposits, making the firm ineligible per the regulatory requirements. In that case, according to experts, the regulators would have to make an exception.<\/p>\n","post_title":"JP Morgan, PNC Race To Acquire Troubled First Republic Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jp-morgan-pnc-race-to-acquire-troubled-first-republic-bank","to_ping":"","pinged":"","post_modified":"2023-04-30 16:53:28","post_modified_gmt":"2023-04-30 06:53:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11368","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
The lawsuit, dismissed by US District Judge Haywood Gilliam on Friday, claimed the FDIC improperly restricted the former employees' access to their retirement funds after the collapse of First Republic Bank. However, Judge Gilliam cited a federal law from the 1980s, established after the savings and loan crisis, that grants the FDIC broad authority as a receiver for failed banks, effectively preventing judicial intervention in such matters.<\/p>\n\n\n\n The law referenced by Judge Gilliam allows the FDIC significant leeway in handling the receivership duties of failed banks. This law forecloses actions which seek to '\"restrain or affect'\" the FDIC in fulfilling its receivership duties,\" Gilliam stated. Interestingly, the dismissal was with prejudice, meaning the lawsuit cannot be brought again.<\/p>\n\n\n\n See Related:<\/em><\/strong> Binance Faces Major Legal Hurdle As Judge Upholds Key SEC Charges<\/a><\/p>\n\n\n\n First Republic Bank, which catered to wealthy customers and had $229 billion in assets, failed on May 1, 2023. The collapse was the largest US bank failure since the 2008 financial crisis, triggered by a series of Federal Reserve interest rate increases that caused significant losses in the bank's investment portfolio and prompted depositors to withdraw their funds.<\/p>\n\n\n\n Lawyers representing the former First Republic employees did not immediately respond to requests for comment. Similarly, an FDIC spokesman declined to comment on the ruling. The case highlights the tension between federal regulatory authority and the rights of individuals affected by bank failures.<\/p>\n\n\n\n First Republic's failure occurred less than two months after Silicon Valley Bank and Signature Bank's collapses, marking a turbulent period for the US banking sector. Despite the high-profile nature of these failures, JPMorgan was not involved in this particular case.<\/p>\n","post_title":"First Republic Ex-employees\u2019 $150M Lawsuit against FDIC Dismissed","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"first-republic-ex-employees-150m-lawsuit-against-fdic-dismissed","to_ping":"","pinged":"","post_modified":"2024-07-16 05:15:09","post_modified_gmt":"2024-07-15 19:15:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17803","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11368,"post_author":"13","post_date":"2023-04-30 16:50:54","post_date_gmt":"2023-04-30 06:50:54","post_content":"\n JPMorgan Chase & Co. and PNC Financial Services Group Inc. are bidding to take over the assets of First Republic Bank from the Federal Deposit Insurance Corporation (FDIC).<\/p>\n\n\n\n According to unnamed sources who shared information<\/a> with the Wall Street Journal, the FDIC had invited several lenders to submit their bids for the acquisition of the San Francisco-based bank by Sunday. From the received bids, JPM and PNC have reportedly been invited to the next level of the sale.<\/p>\n\n\n\n FDIC was forced to intervene after First Republic\u2019s stock price dropped by up to 97%, leaving the company with slightly over $650 million in market valuation. The bank earlier revealed that it had lost almost 40% of its deposits partly due to panic withdrawals following the collapse of Silicon Valley Bank.<\/p>\n\n\n\n Besides, First Republic\u2019s balance sheet comprises low-interest loans, including an extensive portfolio of jumbo mortgages extended to high-net-worth individuals, which have reportedly lost value since the Federal Reserve\u2019s borrowing rates hikes. <\/p>\n\n\n\n Per the report, as of Friday, the FDIC had yet to decide to place First Republic Bank under receivership after attempts to have a takeover from a consortium of big banks failed to materialize.<\/p>\n\n\n\n The people familiar with the matter revealed to Bloomberg<\/a> that a group of 11 banks owning up to $30 billion in deposits with First Republic Bank were unable to make a joint investment that could save the bank.<\/p>\n\n\n\n It remains to be seen how competitive JPM\u2019s bid to take over the lender would be, considering the bank has already amassed over 10% of the nationwide deposits, making the firm ineligible per the regulatory requirements. In that case, according to experts, the regulators would have to make an exception.<\/p>\n","post_title":"JP Morgan, PNC Race To Acquire Troubled First Republic Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jp-morgan-pnc-race-to-acquire-troubled-first-republic-bank","to_ping":"","pinged":"","post_modified":"2023-04-30 16:53:28","post_modified_gmt":"2023-04-30 06:53:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11368","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
A federal judge in California has dismissed a lawsuit brought by nearly 170 former employees of the failed First Republic Bank. The employees accused the Federal Deposit Insurance Corp (FDIC) of improperly blocking their access to at least $150 million in retirement funds, Reuters reported<\/a>.<\/p>\n\n\n\n The lawsuit, dismissed by US District Judge Haywood Gilliam on Friday, claimed the FDIC improperly restricted the former employees' access to their retirement funds after the collapse of First Republic Bank. However, Judge Gilliam cited a federal law from the 1980s, established after the savings and loan crisis, that grants the FDIC broad authority as a receiver for failed banks, effectively preventing judicial intervention in such matters.<\/p>\n\n\n\n The law referenced by Judge Gilliam allows the FDIC significant leeway in handling the receivership duties of failed banks. This law forecloses actions which seek to '\"restrain or affect'\" the FDIC in fulfilling its receivership duties,\" Gilliam stated. Interestingly, the dismissal was with prejudice, meaning the lawsuit cannot be brought again.<\/p>\n\n\n\n See Related:<\/em><\/strong> Binance Faces Major Legal Hurdle As Judge Upholds Key SEC Charges<\/a><\/p>\n\n\n\n First Republic Bank, which catered to wealthy customers and had $229 billion in assets, failed on May 1, 2023. The collapse was the largest US bank failure since the 2008 financial crisis, triggered by a series of Federal Reserve interest rate increases that caused significant losses in the bank's investment portfolio and prompted depositors to withdraw their funds.<\/p>\n\n\n\n Lawyers representing the former First Republic employees did not immediately respond to requests for comment. Similarly, an FDIC spokesman declined to comment on the ruling. The case highlights the tension between federal regulatory authority and the rights of individuals affected by bank failures.<\/p>\n\n\n\n First Republic's failure occurred less than two months after Silicon Valley Bank and Signature Bank's collapses, marking a turbulent period for the US banking sector. Despite the high-profile nature of these failures, JPMorgan was not involved in this particular case.<\/p>\n","post_title":"First Republic Ex-employees\u2019 $150M Lawsuit against FDIC Dismissed","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"first-republic-ex-employees-150m-lawsuit-against-fdic-dismissed","to_ping":"","pinged":"","post_modified":"2024-07-16 05:15:09","post_modified_gmt":"2024-07-15 19:15:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17803","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11368,"post_author":"13","post_date":"2023-04-30 16:50:54","post_date_gmt":"2023-04-30 06:50:54","post_content":"\n JPMorgan Chase & Co. and PNC Financial Services Group Inc. are bidding to take over the assets of First Republic Bank from the Federal Deposit Insurance Corporation (FDIC).<\/p>\n\n\n\n According to unnamed sources who shared information<\/a> with the Wall Street Journal, the FDIC had invited several lenders to submit their bids for the acquisition of the San Francisco-based bank by Sunday. From the received bids, JPM and PNC have reportedly been invited to the next level of the sale.<\/p>\n\n\n\n FDIC was forced to intervene after First Republic\u2019s stock price dropped by up to 97%, leaving the company with slightly over $650 million in market valuation. The bank earlier revealed that it had lost almost 40% of its deposits partly due to panic withdrawals following the collapse of Silicon Valley Bank.<\/p>\n\n\n\n Besides, First Republic\u2019s balance sheet comprises low-interest loans, including an extensive portfolio of jumbo mortgages extended to high-net-worth individuals, which have reportedly lost value since the Federal Reserve\u2019s borrowing rates hikes. <\/p>\n\n\n\n Per the report, as of Friday, the FDIC had yet to decide to place First Republic Bank under receivership after attempts to have a takeover from a consortium of big banks failed to materialize.<\/p>\n\n\n\n The people familiar with the matter revealed to Bloomberg<\/a> that a group of 11 banks owning up to $30 billion in deposits with First Republic Bank were unable to make a joint investment that could save the bank.<\/p>\n\n\n\n It remains to be seen how competitive JPM\u2019s bid to take over the lender would be, considering the bank has already amassed over 10% of the nationwide deposits, making the firm ineligible per the regulatory requirements. In that case, according to experts, the regulators would have to make an exception.<\/p>\n","post_title":"JP Morgan, PNC Race To Acquire Troubled First Republic Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jp-morgan-pnc-race-to-acquire-troubled-first-republic-bank","to_ping":"","pinged":"","post_modified":"2023-04-30 16:53:28","post_modified_gmt":"2023-04-30 06:53:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11368","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
A federal judge in California has dismissed a lawsuit brought by nearly 170 former employees of the failed First Republic Bank. The employees accused the Federal Deposit Insurance Corp (FDIC) of improperly blocking their access to at least $150 million in retirement funds, Reuters reported<\/a>.<\/p>\n\n\n\n The lawsuit, dismissed by US District Judge Haywood Gilliam on Friday, claimed the FDIC improperly restricted the former employees' access to their retirement funds after the collapse of First Republic Bank. However, Judge Gilliam cited a federal law from the 1980s, established after the savings and loan crisis, that grants the FDIC broad authority as a receiver for failed banks, effectively preventing judicial intervention in such matters.<\/p>\n\n\n\n The law referenced by Judge Gilliam allows the FDIC significant leeway in handling the receivership duties of failed banks. This law forecloses actions which seek to '\"restrain or affect'\" the FDIC in fulfilling its receivership duties,\" Gilliam stated. Interestingly, the dismissal was with prejudice, meaning the lawsuit cannot be brought again.<\/p>\n\n\n\n See Related:<\/em><\/strong> Binance Faces Major Legal Hurdle As Judge Upholds Key SEC Charges<\/a><\/p>\n\n\n\n First Republic Bank, which catered to wealthy customers and had $229 billion in assets, failed on May 1, 2023. The collapse was the largest US bank failure since the 2008 financial crisis, triggered by a series of Federal Reserve interest rate increases that caused significant losses in the bank's investment portfolio and prompted depositors to withdraw their funds.<\/p>\n\n\n\n Lawyers representing the former First Republic employees did not immediately respond to requests for comment. Similarly, an FDIC spokesman declined to comment on the ruling. The case highlights the tension between federal regulatory authority and the rights of individuals affected by bank failures.<\/p>\n\n\n\n First Republic's failure occurred less than two months after Silicon Valley Bank and Signature Bank's collapses, marking a turbulent period for the US banking sector. Despite the high-profile nature of these failures, JPMorgan was not involved in this particular case.<\/p>\n","post_title":"First Republic Ex-employees\u2019 $150M Lawsuit against FDIC Dismissed","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"first-republic-ex-employees-150m-lawsuit-against-fdic-dismissed","to_ping":"","pinged":"","post_modified":"2024-07-16 05:15:09","post_modified_gmt":"2024-07-15 19:15:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17803","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11368,"post_author":"13","post_date":"2023-04-30 16:50:54","post_date_gmt":"2023-04-30 06:50:54","post_content":"\n JPMorgan Chase & Co. and PNC Financial Services Group Inc. are bidding to take over the assets of First Republic Bank from the Federal Deposit Insurance Corporation (FDIC).<\/p>\n\n\n\n According to unnamed sources who shared information<\/a> with the Wall Street Journal, the FDIC had invited several lenders to submit their bids for the acquisition of the San Francisco-based bank by Sunday. From the received bids, JPM and PNC have reportedly been invited to the next level of the sale.<\/p>\n\n\n\n FDIC was forced to intervene after First Republic\u2019s stock price dropped by up to 97%, leaving the company with slightly over $650 million in market valuation. The bank earlier revealed that it had lost almost 40% of its deposits partly due to panic withdrawals following the collapse of Silicon Valley Bank.<\/p>\n\n\n\n Besides, First Republic\u2019s balance sheet comprises low-interest loans, including an extensive portfolio of jumbo mortgages extended to high-net-worth individuals, which have reportedly lost value since the Federal Reserve\u2019s borrowing rates hikes. <\/p>\n\n\n\n Per the report, as of Friday, the FDIC had yet to decide to place First Republic Bank under receivership after attempts to have a takeover from a consortium of big banks failed to materialize.<\/p>\n\n\n\n The people familiar with the matter revealed to Bloomberg<\/a> that a group of 11 banks owning up to $30 billion in deposits with First Republic Bank were unable to make a joint investment that could save the bank.<\/p>\n\n\n\n It remains to be seen how competitive JPM\u2019s bid to take over the lender would be, considering the bank has already amassed over 10% of the nationwide deposits, making the firm ineligible per the regulatory requirements. In that case, according to experts, the regulators would have to make an exception.<\/p>\n","post_title":"JP Morgan, PNC Race To Acquire Troubled First Republic Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jp-morgan-pnc-race-to-acquire-troubled-first-republic-bank","to_ping":"","pinged":"","post_modified":"2023-04-30 16:53:28","post_modified_gmt":"2023-04-30 06:53:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11368","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
A federal judge in California has dismissed a lawsuit brought by nearly 170 former employees of the failed First Republic Bank. The employees accused the Federal Deposit Insurance Corp (FDIC) of improperly blocking their access to at least $150 million in retirement funds, Reuters reported<\/a>.<\/p>\n\n\n\n The lawsuit, dismissed by US District Judge Haywood Gilliam on Friday, claimed the FDIC improperly restricted the former employees' access to their retirement funds after the collapse of First Republic Bank. However, Judge Gilliam cited a federal law from the 1980s, established after the savings and loan crisis, that grants the FDIC broad authority as a receiver for failed banks, effectively preventing judicial intervention in such matters.<\/p>\n\n\n\n The law referenced by Judge Gilliam allows the FDIC significant leeway in handling the receivership duties of failed banks. This law forecloses actions which seek to '\"restrain or affect'\" the FDIC in fulfilling its receivership duties,\" Gilliam stated. Interestingly, the dismissal was with prejudice, meaning the lawsuit cannot be brought again.<\/p>\n\n\n\n See Related:<\/em><\/strong> Binance Faces Major Legal Hurdle As Judge Upholds Key SEC Charges<\/a><\/p>\n\n\n\n First Republic Bank, which catered to wealthy customers and had $229 billion in assets, failed on May 1, 2023. The collapse was the largest US bank failure since the 2008 financial crisis, triggered by a series of Federal Reserve interest rate increases that caused significant losses in the bank's investment portfolio and prompted depositors to withdraw their funds.<\/p>\n\n\n\n Lawyers representing the former First Republic employees did not immediately respond to requests for comment. Similarly, an FDIC spokesman declined to comment on the ruling. The case highlights the tension between federal regulatory authority and the rights of individuals affected by bank failures.<\/p>\n\n\n\n First Republic's failure occurred less than two months after Silicon Valley Bank and Signature Bank's collapses, marking a turbulent period for the US banking sector. Despite the high-profile nature of these failures, JPMorgan was not involved in this particular case.<\/p>\n","post_title":"First Republic Ex-employees\u2019 $150M Lawsuit against FDIC Dismissed","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"first-republic-ex-employees-150m-lawsuit-against-fdic-dismissed","to_ping":"","pinged":"","post_modified":"2024-07-16 05:15:09","post_modified_gmt":"2024-07-15 19:15:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17803","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11368,"post_author":"13","post_date":"2023-04-30 16:50:54","post_date_gmt":"2023-04-30 06:50:54","post_content":"\n JPMorgan Chase & Co. and PNC Financial Services Group Inc. are bidding to take over the assets of First Republic Bank from the Federal Deposit Insurance Corporation (FDIC).<\/p>\n\n\n\n According to unnamed sources who shared information<\/a> with the Wall Street Journal, the FDIC had invited several lenders to submit their bids for the acquisition of the San Francisco-based bank by Sunday. From the received bids, JPM and PNC have reportedly been invited to the next level of the sale.<\/p>\n\n\n\n FDIC was forced to intervene after First Republic\u2019s stock price dropped by up to 97%, leaving the company with slightly over $650 million in market valuation. The bank earlier revealed that it had lost almost 40% of its deposits partly due to panic withdrawals following the collapse of Silicon Valley Bank.<\/p>\n\n\n\n Besides, First Republic\u2019s balance sheet comprises low-interest loans, including an extensive portfolio of jumbo mortgages extended to high-net-worth individuals, which have reportedly lost value since the Federal Reserve\u2019s borrowing rates hikes. <\/p>\n\n\n\n Per the report, as of Friday, the FDIC had yet to decide to place First Republic Bank under receivership after attempts to have a takeover from a consortium of big banks failed to materialize.<\/p>\n\n\n\n The people familiar with the matter revealed to Bloomberg<\/a> that a group of 11 banks owning up to $30 billion in deposits with First Republic Bank were unable to make a joint investment that could save the bank.<\/p>\n\n\n\n It remains to be seen how competitive JPM\u2019s bid to take over the lender would be, considering the bank has already amassed over 10% of the nationwide deposits, making the firm ineligible per the regulatory requirements. In that case, according to experts, the regulators would have to make an exception.<\/p>\n","post_title":"JP Morgan, PNC Race To Acquire Troubled First Republic Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jp-morgan-pnc-race-to-acquire-troubled-first-republic-bank","to_ping":"","pinged":"","post_modified":"2023-04-30 16:53:28","post_modified_gmt":"2023-04-30 06:53:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11368","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
A federal judge in California has dismissed a lawsuit brought by nearly 170 former employees of the failed First Republic Bank. The employees accused the Federal Deposit Insurance Corp (FDIC) of improperly blocking their access to at least $150 million in retirement funds, Reuters reported<\/a>.<\/p>\n\n\n\n The lawsuit, dismissed by US District Judge Haywood Gilliam on Friday, claimed the FDIC improperly restricted the former employees' access to their retirement funds after the collapse of First Republic Bank. However, Judge Gilliam cited a federal law from the 1980s, established after the savings and loan crisis, that grants the FDIC broad authority as a receiver for failed banks, effectively preventing judicial intervention in such matters.<\/p>\n\n\n\n The law referenced by Judge Gilliam allows the FDIC significant leeway in handling the receivership duties of failed banks. This law forecloses actions which seek to '\"restrain or affect'\" the FDIC in fulfilling its receivership duties,\" Gilliam stated. Interestingly, the dismissal was with prejudice, meaning the lawsuit cannot be brought again.<\/p>\n\n\n\n See Related:<\/em><\/strong> Binance Faces Major Legal Hurdle As Judge Upholds Key SEC Charges<\/a><\/p>\n\n\n\n First Republic Bank, which catered to wealthy customers and had $229 billion in assets, failed on May 1, 2023. The collapse was the largest US bank failure since the 2008 financial crisis, triggered by a series of Federal Reserve interest rate increases that caused significant losses in the bank's investment portfolio and prompted depositors to withdraw their funds.<\/p>\n\n\n\n Lawyers representing the former First Republic employees did not immediately respond to requests for comment. Similarly, an FDIC spokesman declined to comment on the ruling. The case highlights the tension between federal regulatory authority and the rights of individuals affected by bank failures.<\/p>\n\n\n\n First Republic's failure occurred less than two months after Silicon Valley Bank and Signature Bank's collapses, marking a turbulent period for the US banking sector. Despite the high-profile nature of these failures, JPMorgan was not involved in this particular case.<\/p>\n","post_title":"First Republic Ex-employees\u2019 $150M Lawsuit against FDIC Dismissed","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"first-republic-ex-employees-150m-lawsuit-against-fdic-dismissed","to_ping":"","pinged":"","post_modified":"2024-07-16 05:15:09","post_modified_gmt":"2024-07-15 19:15:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17803","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11368,"post_author":"13","post_date":"2023-04-30 16:50:54","post_date_gmt":"2023-04-30 06:50:54","post_content":"\n JPMorgan Chase & Co. and PNC Financial Services Group Inc. are bidding to take over the assets of First Republic Bank from the Federal Deposit Insurance Corporation (FDIC).<\/p>\n\n\n\n According to unnamed sources who shared information<\/a> with the Wall Street Journal, the FDIC had invited several lenders to submit their bids for the acquisition of the San Francisco-based bank by Sunday. From the received bids, JPM and PNC have reportedly been invited to the next level of the sale.<\/p>\n\n\n\n FDIC was forced to intervene after First Republic\u2019s stock price dropped by up to 97%, leaving the company with slightly over $650 million in market valuation. The bank earlier revealed that it had lost almost 40% of its deposits partly due to panic withdrawals following the collapse of Silicon Valley Bank.<\/p>\n\n\n\n Besides, First Republic\u2019s balance sheet comprises low-interest loans, including an extensive portfolio of jumbo mortgages extended to high-net-worth individuals, which have reportedly lost value since the Federal Reserve\u2019s borrowing rates hikes. <\/p>\n\n\n\n Per the report, as of Friday, the FDIC had yet to decide to place First Republic Bank under receivership after attempts to have a takeover from a consortium of big banks failed to materialize.<\/p>\n\n\n\n The people familiar with the matter revealed to Bloomberg<\/a> that a group of 11 banks owning up to $30 billion in deposits with First Republic Bank were unable to make a joint investment that could save the bank.<\/p>\n\n\n\n It remains to be seen how competitive JPM\u2019s bid to take over the lender would be, considering the bank has already amassed over 10% of the nationwide deposits, making the firm ineligible per the regulatory requirements. In that case, according to experts, the regulators would have to make an exception.<\/p>\n","post_title":"JP Morgan, PNC Race To Acquire Troubled First Republic Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jp-morgan-pnc-race-to-acquire-troubled-first-republic-bank","to_ping":"","pinged":"","post_modified":"2023-04-30 16:53:28","post_modified_gmt":"2023-04-30 06:53:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11368","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
According to the consent order, a Morgan Stanley managing director based in California oversaw the trades in question. Regulators found that the bank did not verify whether the trades were being made using privileged, nonpublic information. In addition to the $2 million fine, Morgan Stanley must now review and strengthen its internal policies to better scrutinize stock sales by officers of public companies.<\/p>\n","post_title":"Morgan Stanley Fined $2M Over Insider Trading Lapses Linked to First Republic","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"morgan-stanley-fined-2m-over-insider-trading-lapses-linked-to-first-republic","to_ping":"","pinged":"","post_modified":"2024-09-09 02:00:11","post_modified_gmt":"2024-09-08 16:00:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18548","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17803,"post_author":"1","post_date":"2024-07-16 05:15:05","post_date_gmt":"2024-07-15 19:15:05","post_content":"\n A federal judge in California has dismissed a lawsuit brought by nearly 170 former employees of the failed First Republic Bank. The employees accused the Federal Deposit Insurance Corp (FDIC) of improperly blocking their access to at least $150 million in retirement funds, Reuters reported<\/a>.<\/p>\n\n\n\n The lawsuit, dismissed by US District Judge Haywood Gilliam on Friday, claimed the FDIC improperly restricted the former employees' access to their retirement funds after the collapse of First Republic Bank. However, Judge Gilliam cited a federal law from the 1980s, established after the savings and loan crisis, that grants the FDIC broad authority as a receiver for failed banks, effectively preventing judicial intervention in such matters.<\/p>\n\n\n\n The law referenced by Judge Gilliam allows the FDIC significant leeway in handling the receivership duties of failed banks. This law forecloses actions which seek to '\"restrain or affect'\" the FDIC in fulfilling its receivership duties,\" Gilliam stated. Interestingly, the dismissal was with prejudice, meaning the lawsuit cannot be brought again.<\/p>\n\n\n\n See Related:<\/em><\/strong> Binance Faces Major Legal Hurdle As Judge Upholds Key SEC Charges<\/a><\/p>\n\n\n\n First Republic Bank, which catered to wealthy customers and had $229 billion in assets, failed on May 1, 2023. The collapse was the largest US bank failure since the 2008 financial crisis, triggered by a series of Federal Reserve interest rate increases that caused significant losses in the bank's investment portfolio and prompted depositors to withdraw their funds.<\/p>\n\n\n\n Lawyers representing the former First Republic employees did not immediately respond to requests for comment. Similarly, an FDIC spokesman declined to comment on the ruling. The case highlights the tension between federal regulatory authority and the rights of individuals affected by bank failures.<\/p>\n\n\n\n First Republic's failure occurred less than two months after Silicon Valley Bank and Signature Bank's collapses, marking a turbulent period for the US banking sector. Despite the high-profile nature of these failures, JPMorgan was not involved in this particular case.<\/p>\n","post_title":"First Republic Ex-employees\u2019 $150M Lawsuit against FDIC Dismissed","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"first-republic-ex-employees-150m-lawsuit-against-fdic-dismissed","to_ping":"","pinged":"","post_modified":"2024-07-16 05:15:09","post_modified_gmt":"2024-07-15 19:15:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17803","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11368,"post_author":"13","post_date":"2023-04-30 16:50:54","post_date_gmt":"2023-04-30 06:50:54","post_content":"\n JPMorgan Chase & Co. and PNC Financial Services Group Inc. are bidding to take over the assets of First Republic Bank from the Federal Deposit Insurance Corporation (FDIC).<\/p>\n\n\n\n According to unnamed sources who shared information<\/a> with the Wall Street Journal, the FDIC had invited several lenders to submit their bids for the acquisition of the San Francisco-based bank by Sunday. From the received bids, JPM and PNC have reportedly been invited to the next level of the sale.<\/p>\n\n\n\n FDIC was forced to intervene after First Republic\u2019s stock price dropped by up to 97%, leaving the company with slightly over $650 million in market valuation. The bank earlier revealed that it had lost almost 40% of its deposits partly due to panic withdrawals following the collapse of Silicon Valley Bank.<\/p>\n\n\n\n Besides, First Republic\u2019s balance sheet comprises low-interest loans, including an extensive portfolio of jumbo mortgages extended to high-net-worth individuals, which have reportedly lost value since the Federal Reserve\u2019s borrowing rates hikes. <\/p>\n\n\n\n Per the report, as of Friday, the FDIC had yet to decide to place First Republic Bank under receivership after attempts to have a takeover from a consortium of big banks failed to materialize.<\/p>\n\n\n\n The people familiar with the matter revealed to Bloomberg<\/a> that a group of 11 banks owning up to $30 billion in deposits with First Republic Bank were unable to make a joint investment that could save the bank.<\/p>\n\n\n\n It remains to be seen how competitive JPM\u2019s bid to take over the lender would be, considering the bank has already amassed over 10% of the nationwide deposits, making the firm ineligible per the regulatory requirements. In that case, according to experts, the regulators would have to make an exception.<\/p>\n","post_title":"JP Morgan, PNC Race To Acquire Troubled First Republic Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jp-morgan-pnc-race-to-acquire-troubled-first-republic-bank","to_ping":"","pinged":"","post_modified":"2023-04-30 16:53:28","post_modified_gmt":"2023-04-30 06:53:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11368","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
In early 2023, a string of U.S. bank failures, including that of First Republic, rocked the global banking industry. Insider trades conducted by executives during this period attracted intense scrutiny from regulators. Massachusetts Secretary of the Commonwealth William Galvin launched a probe into First Republic's stock sales in March 2023, examining how insiders handled their trades and whether proper policies were in place to prevent any wrongdoing.<\/p>\n\n\n\n According to the consent order, a Morgan Stanley managing director based in California oversaw the trades in question. Regulators found that the bank did not verify whether the trades were being made using privileged, nonpublic information. In addition to the $2 million fine, Morgan Stanley must now review and strengthen its internal policies to better scrutinize stock sales by officers of public companies.<\/p>\n","post_title":"Morgan Stanley Fined $2M Over Insider Trading Lapses Linked to First Republic","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"morgan-stanley-fined-2m-over-insider-trading-lapses-linked-to-first-republic","to_ping":"","pinged":"","post_modified":"2024-09-09 02:00:11","post_modified_gmt":"2024-09-08 16:00:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18548","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17803,"post_author":"1","post_date":"2024-07-16 05:15:05","post_date_gmt":"2024-07-15 19:15:05","post_content":"\n A federal judge in California has dismissed a lawsuit brought by nearly 170 former employees of the failed First Republic Bank. The employees accused the Federal Deposit Insurance Corp (FDIC) of improperly blocking their access to at least $150 million in retirement funds, Reuters reported<\/a>.<\/p>\n\n\n\n The lawsuit, dismissed by US District Judge Haywood Gilliam on Friday, claimed the FDIC improperly restricted the former employees' access to their retirement funds after the collapse of First Republic Bank. However, Judge Gilliam cited a federal law from the 1980s, established after the savings and loan crisis, that grants the FDIC broad authority as a receiver for failed banks, effectively preventing judicial intervention in such matters.<\/p>\n\n\n\n The law referenced by Judge Gilliam allows the FDIC significant leeway in handling the receivership duties of failed banks. This law forecloses actions which seek to '\"restrain or affect'\" the FDIC in fulfilling its receivership duties,\" Gilliam stated. Interestingly, the dismissal was with prejudice, meaning the lawsuit cannot be brought again.<\/p>\n\n\n\n See Related:<\/em><\/strong> Binance Faces Major Legal Hurdle As Judge Upholds Key SEC Charges<\/a><\/p>\n\n\n\n First Republic Bank, which catered to wealthy customers and had $229 billion in assets, failed on May 1, 2023. The collapse was the largest US bank failure since the 2008 financial crisis, triggered by a series of Federal Reserve interest rate increases that caused significant losses in the bank's investment portfolio and prompted depositors to withdraw their funds.<\/p>\n\n\n\n Lawyers representing the former First Republic employees did not immediately respond to requests for comment. Similarly, an FDIC spokesman declined to comment on the ruling. The case highlights the tension between federal regulatory authority and the rights of individuals affected by bank failures.<\/p>\n\n\n\n First Republic's failure occurred less than two months after Silicon Valley Bank and Signature Bank's collapses, marking a turbulent period for the US banking sector. Despite the high-profile nature of these failures, JPMorgan was not involved in this particular case.<\/p>\n","post_title":"First Republic Ex-employees\u2019 $150M Lawsuit against FDIC Dismissed","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"first-republic-ex-employees-150m-lawsuit-against-fdic-dismissed","to_ping":"","pinged":"","post_modified":"2024-07-16 05:15:09","post_modified_gmt":"2024-07-15 19:15:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17803","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11368,"post_author":"13","post_date":"2023-04-30 16:50:54","post_date_gmt":"2023-04-30 06:50:54","post_content":"\n JPMorgan Chase & Co. and PNC Financial Services Group Inc. are bidding to take over the assets of First Republic Bank from the Federal Deposit Insurance Corporation (FDIC).<\/p>\n\n\n\n According to unnamed sources who shared information<\/a> with the Wall Street Journal, the FDIC had invited several lenders to submit their bids for the acquisition of the San Francisco-based bank by Sunday. From the received bids, JPM and PNC have reportedly been invited to the next level of the sale.<\/p>\n\n\n\n FDIC was forced to intervene after First Republic\u2019s stock price dropped by up to 97%, leaving the company with slightly over $650 million in market valuation. The bank earlier revealed that it had lost almost 40% of its deposits partly due to panic withdrawals following the collapse of Silicon Valley Bank.<\/p>\n\n\n\n Besides, First Republic\u2019s balance sheet comprises low-interest loans, including an extensive portfolio of jumbo mortgages extended to high-net-worth individuals, which have reportedly lost value since the Federal Reserve\u2019s borrowing rates hikes. <\/p>\n\n\n\n Per the report, as of Friday, the FDIC had yet to decide to place First Republic Bank under receivership after attempts to have a takeover from a consortium of big banks failed to materialize.<\/p>\n\n\n\n The people familiar with the matter revealed to Bloomberg<\/a> that a group of 11 banks owning up to $30 billion in deposits with First Republic Bank were unable to make a joint investment that could save the bank.<\/p>\n\n\n\n It remains to be seen how competitive JPM\u2019s bid to take over the lender would be, considering the bank has already amassed over 10% of the nationwide deposits, making the firm ineligible per the regulatory requirements. In that case, according to experts, the regulators would have to make an exception.<\/p>\n","post_title":"JP Morgan, PNC Race To Acquire Troubled First Republic Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jp-morgan-pnc-race-to-acquire-troubled-first-republic-bank","to_ping":"","pinged":"","post_modified":"2023-04-30 16:53:28","post_modified_gmt":"2023-04-30 06:53:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11368","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
The Wall Street Journal reporte<\/a>d<\/a> that James Herbert II, the former executive chairman of First Republic Bank, is believed to be the individual at the heart of the case. While Herbert was not named as a respondent in the Massachusetts settlement, regulators focused on Morgan Stanley's role in managing his trades. The oversight came to light as part of a broader investigation into First Republic's insider sales during its turbulent final months.<\/p>\n\n\n\n In early 2023, a string of U.S. bank failures, including that of First Republic, rocked the global banking industry. Insider trades conducted by executives during this period attracted intense scrutiny from regulators. Massachusetts Secretary of the Commonwealth William Galvin launched a probe into First Republic's stock sales in March 2023, examining how insiders handled their trades and whether proper policies were in place to prevent any wrongdoing.<\/p>\n\n\n\n According to the consent order, a Morgan Stanley managing director based in California oversaw the trades in question. Regulators found that the bank did not verify whether the trades were being made using privileged, nonpublic information. In addition to the $2 million fine, Morgan Stanley must now review and strengthen its internal policies to better scrutinize stock sales by officers of public companies.<\/p>\n","post_title":"Morgan Stanley Fined $2M Over Insider Trading Lapses Linked to First Republic","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"morgan-stanley-fined-2m-over-insider-trading-lapses-linked-to-first-republic","to_ping":"","pinged":"","post_modified":"2024-09-09 02:00:11","post_modified_gmt":"2024-09-08 16:00:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18548","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17803,"post_author":"1","post_date":"2024-07-16 05:15:05","post_date_gmt":"2024-07-15 19:15:05","post_content":"\n A federal judge in California has dismissed a lawsuit brought by nearly 170 former employees of the failed First Republic Bank. The employees accused the Federal Deposit Insurance Corp (FDIC) of improperly blocking their access to at least $150 million in retirement funds, Reuters reported<\/a>.<\/p>\n\n\n\n The lawsuit, dismissed by US District Judge Haywood Gilliam on Friday, claimed the FDIC improperly restricted the former employees' access to their retirement funds after the collapse of First Republic Bank. However, Judge Gilliam cited a federal law from the 1980s, established after the savings and loan crisis, that grants the FDIC broad authority as a receiver for failed banks, effectively preventing judicial intervention in such matters.<\/p>\n\n\n\n The law referenced by Judge Gilliam allows the FDIC significant leeway in handling the receivership duties of failed banks. This law forecloses actions which seek to '\"restrain or affect'\" the FDIC in fulfilling its receivership duties,\" Gilliam stated. Interestingly, the dismissal was with prejudice, meaning the lawsuit cannot be brought again.<\/p>\n\n\n\n See Related:<\/em><\/strong> Binance Faces Major Legal Hurdle As Judge Upholds Key SEC Charges<\/a><\/p>\n\n\n\n First Republic Bank, which catered to wealthy customers and had $229 billion in assets, failed on May 1, 2023. The collapse was the largest US bank failure since the 2008 financial crisis, triggered by a series of Federal Reserve interest rate increases that caused significant losses in the bank's investment portfolio and prompted depositors to withdraw their funds.<\/p>\n\n\n\n Lawyers representing the former First Republic employees did not immediately respond to requests for comment. Similarly, an FDIC spokesman declined to comment on the ruling. The case highlights the tension between federal regulatory authority and the rights of individuals affected by bank failures.<\/p>\n\n\n\n First Republic's failure occurred less than two months after Silicon Valley Bank and Signature Bank's collapses, marking a turbulent period for the US banking sector. Despite the high-profile nature of these failures, JPMorgan was not involved in this particular case.<\/p>\n","post_title":"First Republic Ex-employees\u2019 $150M Lawsuit against FDIC Dismissed","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"first-republic-ex-employees-150m-lawsuit-against-fdic-dismissed","to_ping":"","pinged":"","post_modified":"2024-07-16 05:15:09","post_modified_gmt":"2024-07-15 19:15:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17803","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11368,"post_author":"13","post_date":"2023-04-30 16:50:54","post_date_gmt":"2023-04-30 06:50:54","post_content":"\n JPMorgan Chase & Co. and PNC Financial Services Group Inc. are bidding to take over the assets of First Republic Bank from the Federal Deposit Insurance Corporation (FDIC).<\/p>\n\n\n\n According to unnamed sources who shared information<\/a> with the Wall Street Journal, the FDIC had invited several lenders to submit their bids for the acquisition of the San Francisco-based bank by Sunday. From the received bids, JPM and PNC have reportedly been invited to the next level of the sale.<\/p>\n\n\n\n FDIC was forced to intervene after First Republic\u2019s stock price dropped by up to 97%, leaving the company with slightly over $650 million in market valuation. The bank earlier revealed that it had lost almost 40% of its deposits partly due to panic withdrawals following the collapse of Silicon Valley Bank.<\/p>\n\n\n\n Besides, First Republic\u2019s balance sheet comprises low-interest loans, including an extensive portfolio of jumbo mortgages extended to high-net-worth individuals, which have reportedly lost value since the Federal Reserve\u2019s borrowing rates hikes. <\/p>\n\n\n\n Per the report, as of Friday, the FDIC had yet to decide to place First Republic Bank under receivership after attempts to have a takeover from a consortium of big banks failed to materialize.<\/p>\n\n\n\n The people familiar with the matter revealed to Bloomberg<\/a> that a group of 11 banks owning up to $30 billion in deposits with First Republic Bank were unable to make a joint investment that could save the bank.<\/p>\n\n\n\n It remains to be seen how competitive JPM\u2019s bid to take over the lender would be, considering the bank has already amassed over 10% of the nationwide deposits, making the firm ineligible per the regulatory requirements. In that case, according to experts, the regulators would have to make an exception.<\/p>\n","post_title":"JP Morgan, PNC Race To Acquire Troubled First Republic Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jp-morgan-pnc-race-to-acquire-troubled-first-republic-bank","to_ping":"","pinged":"","post_modified":"2023-04-30 16:53:28","post_modified_gmt":"2023-04-30 06:53:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11368","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
The Wall Street Journal reporte<\/a>d<\/a> that James Herbert II, the former executive chairman of First Republic Bank, is believed to be the individual at the heart of the case. While Herbert was not named as a respondent in the Massachusetts settlement, regulators focused on Morgan Stanley's role in managing his trades. The oversight came to light as part of a broader investigation into First Republic's insider sales during its turbulent final months.<\/p>\n\n\n\n In early 2023, a string of U.S. bank failures, including that of First Republic, rocked the global banking industry. Insider trades conducted by executives during this period attracted intense scrutiny from regulators. Massachusetts Secretary of the Commonwealth William Galvin launched a probe into First Republic's stock sales in March 2023, examining how insiders handled their trades and whether proper policies were in place to prevent any wrongdoing.<\/p>\n\n\n\n According to the consent order, a Morgan Stanley managing director based in California oversaw the trades in question. Regulators found that the bank did not verify whether the trades were being made using privileged, nonpublic information. In addition to the $2 million fine, Morgan Stanley must now review and strengthen its internal policies to better scrutinize stock sales by officers of public companies.<\/p>\n","post_title":"Morgan Stanley Fined $2M Over Insider Trading Lapses Linked to First Republic","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"morgan-stanley-fined-2m-over-insider-trading-lapses-linked-to-first-republic","to_ping":"","pinged":"","post_modified":"2024-09-09 02:00:11","post_modified_gmt":"2024-09-08 16:00:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18548","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17803,"post_author":"1","post_date":"2024-07-16 05:15:05","post_date_gmt":"2024-07-15 19:15:05","post_content":"\n A federal judge in California has dismissed a lawsuit brought by nearly 170 former employees of the failed First Republic Bank. The employees accused the Federal Deposit Insurance Corp (FDIC) of improperly blocking their access to at least $150 million in retirement funds, Reuters reported<\/a>.<\/p>\n\n\n\n The lawsuit, dismissed by US District Judge Haywood Gilliam on Friday, claimed the FDIC improperly restricted the former employees' access to their retirement funds after the collapse of First Republic Bank. However, Judge Gilliam cited a federal law from the 1980s, established after the savings and loan crisis, that grants the FDIC broad authority as a receiver for failed banks, effectively preventing judicial intervention in such matters.<\/p>\n\n\n\n The law referenced by Judge Gilliam allows the FDIC significant leeway in handling the receivership duties of failed banks. This law forecloses actions which seek to '\"restrain or affect'\" the FDIC in fulfilling its receivership duties,\" Gilliam stated. Interestingly, the dismissal was with prejudice, meaning the lawsuit cannot be brought again.<\/p>\n\n\n\n See Related:<\/em><\/strong> Binance Faces Major Legal Hurdle As Judge Upholds Key SEC Charges<\/a><\/p>\n\n\n\n First Republic Bank, which catered to wealthy customers and had $229 billion in assets, failed on May 1, 2023. The collapse was the largest US bank failure since the 2008 financial crisis, triggered by a series of Federal Reserve interest rate increases that caused significant losses in the bank's investment portfolio and prompted depositors to withdraw their funds.<\/p>\n\n\n\n Lawyers representing the former First Republic employees did not immediately respond to requests for comment. Similarly, an FDIC spokesman declined to comment on the ruling. The case highlights the tension between federal regulatory authority and the rights of individuals affected by bank failures.<\/p>\n\n\n\n First Republic's failure occurred less than two months after Silicon Valley Bank and Signature Bank's collapses, marking a turbulent period for the US banking sector. Despite the high-profile nature of these failures, JPMorgan was not involved in this particular case.<\/p>\n","post_title":"First Republic Ex-employees\u2019 $150M Lawsuit against FDIC Dismissed","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"first-republic-ex-employees-150m-lawsuit-against-fdic-dismissed","to_ping":"","pinged":"","post_modified":"2024-07-16 05:15:09","post_modified_gmt":"2024-07-15 19:15:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17803","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11368,"post_author":"13","post_date":"2023-04-30 16:50:54","post_date_gmt":"2023-04-30 06:50:54","post_content":"\n JPMorgan Chase & Co. and PNC Financial Services Group Inc. are bidding to take over the assets of First Republic Bank from the Federal Deposit Insurance Corporation (FDIC).<\/p>\n\n\n\n According to unnamed sources who shared information<\/a> with the Wall Street Journal, the FDIC had invited several lenders to submit their bids for the acquisition of the San Francisco-based bank by Sunday. From the received bids, JPM and PNC have reportedly been invited to the next level of the sale.<\/p>\n\n\n\n FDIC was forced to intervene after First Republic\u2019s stock price dropped by up to 97%, leaving the company with slightly over $650 million in market valuation. The bank earlier revealed that it had lost almost 40% of its deposits partly due to panic withdrawals following the collapse of Silicon Valley Bank.<\/p>\n\n\n\n Besides, First Republic\u2019s balance sheet comprises low-interest loans, including an extensive portfolio of jumbo mortgages extended to high-net-worth individuals, which have reportedly lost value since the Federal Reserve\u2019s borrowing rates hikes. <\/p>\n\n\n\n Per the report, as of Friday, the FDIC had yet to decide to place First Republic Bank under receivership after attempts to have a takeover from a consortium of big banks failed to materialize.<\/p>\n\n\n\n The people familiar with the matter revealed to Bloomberg<\/a> that a group of 11 banks owning up to $30 billion in deposits with First Republic Bank were unable to make a joint investment that could save the bank.<\/p>\n\n\n\n It remains to be seen how competitive JPM\u2019s bid to take over the lender would be, considering the bank has already amassed over 10% of the nationwide deposits, making the firm ineligible per the regulatory requirements. In that case, according to experts, the regulators would have to make an exception.<\/p>\n","post_title":"JP Morgan, PNC Race To Acquire Troubled First Republic Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jp-morgan-pnc-race-to-acquire-troubled-first-republic-bank","to_ping":"","pinged":"","post_modified":"2023-04-30 16:53:28","post_modified_gmt":"2023-04-30 06:53:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11368","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
See Related: <\/em><\/strong>Morgan Stanley Discloses $270M Spot Bitcoin ETF Holdings<\/a><\/p>\n\n\n\n The Wall Street Journal reporte<\/a>d<\/a> that James Herbert II, the former executive chairman of First Republic Bank, is believed to be the individual at the heart of the case. While Herbert was not named as a respondent in the Massachusetts settlement, regulators focused on Morgan Stanley's role in managing his trades. The oversight came to light as part of a broader investigation into First Republic's insider sales during its turbulent final months.<\/p>\n\n\n\n In early 2023, a string of U.S. bank failures, including that of First Republic, rocked the global banking industry. Insider trades conducted by executives during this period attracted intense scrutiny from regulators. Massachusetts Secretary of the Commonwealth William Galvin launched a probe into First Republic's stock sales in March 2023, examining how insiders handled their trades and whether proper policies were in place to prevent any wrongdoing.<\/p>\n\n\n\n According to the consent order, a Morgan Stanley managing director based in California oversaw the trades in question. Regulators found that the bank did not verify whether the trades were being made using privileged, nonpublic information. In addition to the $2 million fine, Morgan Stanley must now review and strengthen its internal policies to better scrutinize stock sales by officers of public companies.<\/p>\n","post_title":"Morgan Stanley Fined $2M Over Insider Trading Lapses Linked to First Republic","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"morgan-stanley-fined-2m-over-insider-trading-lapses-linked-to-first-republic","to_ping":"","pinged":"","post_modified":"2024-09-09 02:00:11","post_modified_gmt":"2024-09-08 16:00:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18548","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17803,"post_author":"1","post_date":"2024-07-16 05:15:05","post_date_gmt":"2024-07-15 19:15:05","post_content":"\n A federal judge in California has dismissed a lawsuit brought by nearly 170 former employees of the failed First Republic Bank. The employees accused the Federal Deposit Insurance Corp (FDIC) of improperly blocking their access to at least $150 million in retirement funds, Reuters reported<\/a>.<\/p>\n\n\n\n The lawsuit, dismissed by US District Judge Haywood Gilliam on Friday, claimed the FDIC improperly restricted the former employees' access to their retirement funds after the collapse of First Republic Bank. However, Judge Gilliam cited a federal law from the 1980s, established after the savings and loan crisis, that grants the FDIC broad authority as a receiver for failed banks, effectively preventing judicial intervention in such matters.<\/p>\n\n\n\n The law referenced by Judge Gilliam allows the FDIC significant leeway in handling the receivership duties of failed banks. This law forecloses actions which seek to '\"restrain or affect'\" the FDIC in fulfilling its receivership duties,\" Gilliam stated. Interestingly, the dismissal was with prejudice, meaning the lawsuit cannot be brought again.<\/p>\n\n\n\n See Related:<\/em><\/strong> Binance Faces Major Legal Hurdle As Judge Upholds Key SEC Charges<\/a><\/p>\n\n\n\n First Republic Bank, which catered to wealthy customers and had $229 billion in assets, failed on May 1, 2023. The collapse was the largest US bank failure since the 2008 financial crisis, triggered by a series of Federal Reserve interest rate increases that caused significant losses in the bank's investment portfolio and prompted depositors to withdraw their funds.<\/p>\n\n\n\n Lawyers representing the former First Republic employees did not immediately respond to requests for comment. Similarly, an FDIC spokesman declined to comment on the ruling. The case highlights the tension between federal regulatory authority and the rights of individuals affected by bank failures.<\/p>\n\n\n\n First Republic's failure occurred less than two months after Silicon Valley Bank and Signature Bank's collapses, marking a turbulent period for the US banking sector. Despite the high-profile nature of these failures, JPMorgan was not involved in this particular case.<\/p>\n","post_title":"First Republic Ex-employees\u2019 $150M Lawsuit against FDIC Dismissed","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"first-republic-ex-employees-150m-lawsuit-against-fdic-dismissed","to_ping":"","pinged":"","post_modified":"2024-07-16 05:15:09","post_modified_gmt":"2024-07-15 19:15:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17803","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11368,"post_author":"13","post_date":"2023-04-30 16:50:54","post_date_gmt":"2023-04-30 06:50:54","post_content":"\n JPMorgan Chase & Co. and PNC Financial Services Group Inc. are bidding to take over the assets of First Republic Bank from the Federal Deposit Insurance Corporation (FDIC).<\/p>\n\n\n\n According to unnamed sources who shared information<\/a> with the Wall Street Journal, the FDIC had invited several lenders to submit their bids for the acquisition of the San Francisco-based bank by Sunday. From the received bids, JPM and PNC have reportedly been invited to the next level of the sale.<\/p>\n\n\n\n FDIC was forced to intervene after First Republic\u2019s stock price dropped by up to 97%, leaving the company with slightly over $650 million in market valuation. The bank earlier revealed that it had lost almost 40% of its deposits partly due to panic withdrawals following the collapse of Silicon Valley Bank.<\/p>\n\n\n\n Besides, First Republic\u2019s balance sheet comprises low-interest loans, including an extensive portfolio of jumbo mortgages extended to high-net-worth individuals, which have reportedly lost value since the Federal Reserve\u2019s borrowing rates hikes. <\/p>\n\n\n\n Per the report, as of Friday, the FDIC had yet to decide to place First Republic Bank under receivership after attempts to have a takeover from a consortium of big banks failed to materialize.<\/p>\n\n\n\n The people familiar with the matter revealed to Bloomberg<\/a> that a group of 11 banks owning up to $30 billion in deposits with First Republic Bank were unable to make a joint investment that could save the bank.<\/p>\n\n\n\n It remains to be seen how competitive JPM\u2019s bid to take over the lender would be, considering the bank has already amassed over 10% of the nationwide deposits, making the firm ineligible per the regulatory requirements. In that case, according to experts, the regulators would have to make an exception.<\/p>\n","post_title":"JP Morgan, PNC Race To Acquire Troubled First Republic Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"jp-morgan-pnc-race-to-acquire-troubled-first-republic-bank","to_ping":"","pinged":"","post_modified":"2023-04-30 16:53:28","post_modified_gmt":"2023-04-30 06:53:28","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=11368","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
In a consent order disclosed last Friday, Massachusetts regulators revealed<\/a> that Morgan Stanley did not ensure that the former First Republic insider, whose account they held, was not trading on material nonpublic information. Although the bank neither admitted nor denied wrongdoing, it agreed to settle the case. A spokesperson for Morgan Stanley stated that the firm was \"pleased to have resolved the matter.\"<\/em><\/p>\n\n\n\n See Related: <\/em><\/strong>Morgan Stanley Discloses $270M Spot Bitcoin ETF Holdings<\/a><\/p>\n\n\n\n The Wall Street Journal reporte<\/a>d<\/a> that James Herbert II, the former executive chairman of First Republic Bank, is believed to be the individual at the heart of the case. While Herbert was not named as a respondent in the Massachusetts settlement, regulators focused on Morgan Stanley's role in managing his trades. The oversight came to light as part of a broader investigation into First Republic's insider sales during its turbulent final months.<\/p>\n\n\n\n In early 2023, a string of U.S. bank failures, including that of First Republic, rocked the global banking industry. Insider trades conducted by executives during this period attracted intense scrutiny from regulators. Massachusetts Secretary of the Commonwealth William Galvin launched a probe into First Republic's stock sales in March 2023, examining how insiders handled their trades and whether proper policies were in place to prevent any wrongdoing.<\/p>\n\n\n\n According to the consent order, a Morgan Stanley managing director based in California oversaw the trades in question. Regulators found that the bank did not verify whether the trades were being made using privileged, nonpublic information. In addition to the $2 million fine, Morgan Stanley must now review and strengthen its internal policies to better scrutinize stock sales by officers of public companies.<\/p>\n","post_title":"Morgan Stanley Fined $2M Over Insider Trading Lapses Linked to First Republic","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"morgan-stanley-fined-2m-over-insider-trading-lapses-linked-to-first-republic","to_ping":"","pinged":"","post_modified":"2024-09-09 02:00:11","post_modified_gmt":"2024-09-08 16:00:11","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=18548","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":17803,"post_author":"1","post_date":"2024-07-16 05:15:05","post_date_gmt":"2024-07-15 19:15:05","post_content":"\n A federal judge in California has dismissed a lawsuit brought by nearly 170 former employees of the failed First Republic Bank. The employees accused the Federal Deposit Insurance Corp (FDIC) of improperly blocking their access to at least $150 million in retirement funds, Reuters reported<\/a>.<\/p>\n\n\n\n The lawsuit, dismissed by US District Judge Haywood Gilliam on Friday, claimed the FDIC improperly restricted the former employees' access to their retirement funds after the collapse of First Republic Bank. However, Judge Gilliam cited a federal law from the 1980s, established after the savings and loan crisis, that grants the FDIC broad authority as a receiver for failed banks, effectively preventing judicial intervention in such matters.<\/p>\n\n\n\n The law referenced by Judge Gilliam allows the FDIC significant leeway in handling the receivership duties of failed banks. This law forecloses actions which seek to '\"restrain or affect'\" the FDIC in fulfilling its receivership duties,\" Gilliam stated. Interestingly, the dismissal was with prejudice, meaning the lawsuit cannot be brought again.<\/p>\n\n\n\n See Related:<\/em><\/strong> Binance Faces Major Legal Hurdle As Judge Upholds Key SEC Charges<\/a><\/p>\n\n\n\n First Republic Bank, which catered to wealthy customers and had $229 billion in assets, failed on May 1, 2023. The collapse was the largest US bank failure since the 2008 financial crisis, triggered by a series of Federal Reserve interest rate increases that caused significant losses in the bank's investment portfolio and prompted depositors to withdraw their funds.<\/p>\n\n\n\n Lawyers representing the former First Republic employees did not immediately respond to requests for comment. Similarly, an FDIC spokesman declined to comment on the ruling. The case highlights the tension between federal regulatory authority and the rights of individuals affected by bank failures.<\/p>\n\n\n\n First Republic's failure occurred less than two months after Silicon Valley Bank and Signature Bank's collapses, marking a turbulent period for the US banking sector. Despite the high-profile nature of these failures, JPMorgan was not involved in this particular case.<\/p>\n","post_title":"First Republic Ex-employees\u2019 $150M Lawsuit against FDIC Dismissed","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"first-republic-ex-employees-150m-lawsuit-against-fdic-dismissed","to_ping":"","pinged":"","post_modified":"2024-07-16 05:15:09","post_modified_gmt":"2024-07-15 19:15:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17803","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":11368,"post_author":"13","post_date":"2023-04-30 16:50:54","post_date_gmt":"2023-04-30 06:50:54","post_content":"\n JPMorgan Chase & Co. and PNC Financial Services Group Inc. are bidding to take over the assets of First Republic Bank from the Federal Deposit Insurance Corporation (FDIC).<\/p>\n\n\n\n
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Impact Of First Republic's Collapse<\/h2>\n\n\n\n
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Private Sector Solution<\/h2>\n\n\n\n
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Impact Of First Republic's Collapse<\/h2>\n\n\n\n
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Private Sector Solution<\/h2>\n\n\n\n
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Impact Of First Republic's Collapse<\/h2>\n\n\n\n
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Private Sector Solution<\/h2>\n\n\n\n
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Impact Of First Republic's Collapse<\/h2>\n\n\n\n
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Private Sector Solution<\/h2>\n\n\n\n
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Impact Of First Republic's Collapse<\/h2>\n\n\n\n
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Private Sector Solution<\/h2>\n\n\n\n
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Impact Of First Republic's Collapse<\/h2>\n\n\n\n
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Private Sector Solution<\/h2>\n\n\n\n
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Impact Of First Republic's Collapse<\/h2>\n\n\n\n
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Private Sector Solution<\/h2>\n\n\n\n
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Impact Of First Republic's Collapse<\/h2>\n\n\n\n
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Private Sector Solution<\/h2>\n\n\n\n
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Morgan Stanley's Role In First Republic's Collapse<\/h2>\n\n\n\n
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Impact Of First Republic's Collapse<\/h2>\n\n\n\n
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Private Sector Solution<\/h2>\n\n\n\n
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Morgan Stanley's Role In First Republic's Collapse<\/h2>\n\n\n\n
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Impact Of First Republic's Collapse<\/h2>\n\n\n\n
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Private Sector Solution<\/h2>\n\n\n\n
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Morgan Stanley's Role In First Republic's Collapse<\/h2>\n\n\n\n
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Impact Of First Republic's Collapse<\/h2>\n\n\n\n
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