https://twitter.com/mikealfred/status/1634783756656492544
BREAKING: The FDIC is already on site at First Republic Bank trying to determine the best path forward to protect depositors. Things are moving way faster than expected given the accelerating bank run that has already reached a tipping point.
Confirmed just now that First Republic started throttling outbound wires today.
Also by the end of the day today (Saturday) they stopped processing wires altogether.
The previous wording when trying to wire out of First Republic on Saturday is “wire will be sent first thing Monday”. Now the wording changed to “thank you for your transaction we'll get back to you”
FRC's business model depends on a gentleman's agreement. Essentially, you deposit close to 30% of the loan value with FRC in a deposit account with a 0% interest rate in return for large (mostly) real estate loans at below market interest rates. This dynamic flipped with higher rates as there is little incentive to tie up large deposits at zero interest.
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