As if you need ***another*** reminder of why bitcoin…
*”Morgan said it will take on all of First Republic’s deposits — about $92 billion — and most of its assets, amounting to $203 billion.
Taxpayers, of course, took a big hit: $13 billion in “shared losses” on the loans plus $50 billion in fresh financing. So Morgan booked an immediate two and a half billion dollar profit on the buy.
Meanwhile, the FDIC’s threadbare coverage, already scrounging to just 0.6% of all deposits, got even thinner. The FDIC had already lost $22 and a half billion on Silicon Valley Bank, most of which -- $19 billion – will be converted into what the FDIC calls a “special assessment.” Meaning a tax on your bank account. Which they’ll take from you slowly over the next 4 years, presumably so you don’t notice, because you don’t shear the sheep all at once.”*