Dimon always seems to have his hands in everything. Are the regulators regulating or facilitating? Irregardless Dimon continues to position JP Morgan as too big to fail. Either that, or they will be the last man standing!
Two questions: are the holders of the common stock, preferred stock, and other liabilities taking a complete loss, with no recourse? And did JPMorgan get a sweet enough deal to incentivize big banks to manipulate more of such deals?
Good analysis. Thanks! I don’t know if you’ve seen this or not, but the FDIC is considering tinkering with deposit insurance. One option is unlimited coverage of deposits.
Good analysis as usual and will be linking today as usual @https://nothingnewunderthesun2016.com/
Dimon always seems to have his hands in everything. Are the regulators regulating or facilitating? Irregardless Dimon continues to position JP Morgan as too big to fail. Either that, or they will be the last man standing!
In these days of regulatory capture, regulating IS facilitating.
Two questions: are the holders of the common stock, preferred stock, and other liabilities taking a complete loss, with no recourse? And did JPMorgan get a sweet enough deal to incentivize big banks to manipulate more of such deals?
The FDIC seized First Republic Bank in its entirety, then sold the assets to JPM.
What the stockholders get will be for the FDIC to determine.
Yikes for them!
Good analysis. Thanks! I don’t know if you’ve seen this or not, but the FDIC is considering tinkering with deposit insurance. One option is unlimited coverage of deposits.
https://www.fdic.gov/analysis/options-deposit-insurance-reforms/index.html
I had seen mention of it. Haven't had a chance to dive into the details yet.
It's not going to be an improvement, though.
Unlimited deposit insurance would just be another bail out.
As usual, I salute your brilliant explanation of the problem.
You are most kind. Thank you.