Daily Skimm: First Republic Bank, the third US bank to collapse in six weeks, was bought out by JP Morgan.

Bank Buyouts

The Story

First Republic Bank was bought by JP Morgan Chase after a rough weekend.

How did we get here?

Let's rewind back to March. That's when Silicon Valley Bank and Signature Bank collapsed, leaving First Republic Bank on shaky ground. To keep First Republic afloat, a group of 11 banks threw it a $30 billion lifeline. However, the help did little to ease investors’ concerns. Last week, First Republic said customers pulled about $100 billion in deposits during the first quarter amid fears that — just like SVB and Signature Bank — a majority of deposits were uninsured. The news raised alarms among experts that First Republic, which appeals to wealthier clients like Meta CEO Mark Zuckerberg, could be going under. Now, JP Morgan Chase Bank won the bid to buy out First Republic.

Now what?

After a weekend of frantic effort to save the bank, the transaction was announced hours before the markets open on Monday. JP Morgan Chase bought out all of First Republic’s deposits and most of its assets. They will open 84 locations in eight states after making a deal with the Federal Deposit Insurance Corporation (FDIC). JP Morgan Chase’s chief executive said that the purchase was meant to “to minimize costs to the Deposit Insurance Fund.” However, officials estimate that the price tag to cover the bank’s losses are around $13 billion. This purchase makes JP Morgan Chase, which was already the country’s largest bank, even bigger.

Where do we stand on the banking crisis?

Experts say the current debacle with First Republic Bank is unlikely to create systemic ripples, since the problem is limited to a small group of banks. However, it’s hard to say for sure how it will all play out until the banks and markets open.  

theSkimm

First Republic was once the envy of other major banks, with over $200 billion in assets. Now, it’s fallen victim to economic struggles as the third bank in the US to fail in a matter of months, leaving many questioning where their money is safe.

Who authorities are looking for...

Francisco Oropeza. Over the weekend, Texas officials continued their manhunt for the 38-year-old suspect accused of shooting and killing his five neighbors. On Friday, Wilson Garcia said he asked Oropeza, his neighbor, to stop firing his gun in the yard since it was keeping Garcia’s baby awake. Oropeza allegedly refused, and Garcia threatened to call the police. Authorities said that’s when Oropeza grabbed his AR-15-style rifle and allegedly killed five people, including an 8-year-old boy. Officials said it was “almost execution-style” and that all of the victims were from Honduras. A sheriff said Oropeza “frequently” fired an AR-15-style weapon in his yard and police had been called to his house for the same issue before. Now, more than 200 officers, including the FBI, are searching for Oropeza and are offering an $80,000 reward for info on his whereabouts. Officials said they have “zero leads” and that the suspect could be “anywhere.”

Whose calendar is telling...

Jeffrey Epstein's. Yesterday, the Wall Street Journal reported that Epstein’s documents (including his calendar) showed he was still tied to an elite circle after registering as a sex offender. In 2008, Epstein pleaded guilty to soliciting sex from a minor and served time during an 18-month work-release program. The conviction didn’t stop some from putting time on his calendar. In 2014, Epstein was set to meet with CIA Director William Burns at least three times when he was deputy secretary of state under former President Obama. Other big names? Former White House counsel Kathryn Ruemmler, Bard College President Leon Botstein, and author Noam Chomsky. It’s worth noting the WSJ doesn’t know if all of the meetings took place and what they were about. Many said the relationship with Epstein was strictly professional. Others said they stayed in contact with Epstein because of his connections and wealth.

What the housing market is opening the door to...

Loneliness. Yesterday, a report said America’s broken housing market could be making Gen Z and Millennials lonelier. Compared to other generations, the two groups are already the loneliest. This report found that with rising rent costs, many young Americans aren’t able to live in the neighborhoods they want. That can mean less access to green spaces, common areas, or community events. Those are all things that can drive up a house or apartment’s cost…but are needed to help avoid feelings of loneliness or isolation.

What's getting all tied up...

Adidas. Last week, investors sued the sneaker giant for failing to take precautionary measures in its partnership with Ye. Last year, Adidas cut ties with Ye and his Yeezy line after the rapper made antisemitic comments — costing the company $540 million. Now, investors claim Adidas knew about Ye's problematic behavior before the partnership ended but “routinely ignored” it. A spokesperson for Adidas said they “outright reject these unfounded claims.”

What's still smashing the box office…

“The Super Mario Bros. Movie.”

What's generating mixed feelings...

The Met Gala.

If we learned one thing from theSkimm's 2023 State of Women Report, women have had it. Had it with being society's default caregivers, no matter the cost to their careers or well-being. Had it with male partners who don't — or won't — share the mental load. Had it with employers and elected officials who don't support parents.

But women who identify as Asian Pacific Islander Desi American (APIDA) have faced unique challenges in the past several years: a rising tide of anti-Asian hate, persistent “model minority” stereotyping, the struggle to deal openly with trauma in the face of cultural norms that may discourage such openness. 

For APIDA Heritage Month 2023, we wanted to hear from APIDA readers about how they are responding to this moment. Their responses reveal that they, too, are "done letting society dictate what a woman's role should be." Instead, they are doing what works for them, financially and emotionally — some for the very first time. As one respondent put it, “I stopped being ‘Asian polite.’” Read on here.