First Republic Bank Seized By The FDIC
Summary
Transcript
Well, who would have seen that coming? Actually, all of you saw it coming, right? Type one, if you saw it come, because you’re part of an engine nation. And this is only just the beginning. I want to sing that song. It’s only just begun to crash. Bank failures everywhere. The FDIC and Yellen don’t care. Sorry, I have to do this because these are exciting times. And when you know that these things are coming ahead, you know what to do to prepare.
And we’re going to own this. Now, banks fail all the time, quite frankly. But this is a little different. Why? Well, it’s always different because these are pretty darn good sized banks. Every year, small banks fail because they screw things up. And at the end of the story video, I’m going to share with you a personal story. Actually, not my personal story, but because of my position on this channel, I get to meet really interesting people.
People that own banks, people that were there when their bank or another bank was seized. And the stories will absolutely blow you away. There’s lots of guns involved and little nerdy dudes with, with glasses and laptops. So we’re going to share that story in a second. But we have to remember, First Republic, we knew that it was in trouble. Reported on that like eight months ago. It’s now just finally time to pay the piper.
What you need to understand is the only reason these banks are failing is because of their size, because of their certain regulation, because of the. The part that they took in buying up other failed banks. Well, the whole banking industry is in some serious trouble. Dead serious. Really bad. So bad accounts insured. No joke. This came from the FDIC. Now do me a favor real quick. Hashtag Fox News, because they’re too scared, too chicken to have me on live.
And I gotta be honest with you, when you’re talking about stories like this and you feel like you’re in crazy town because all of your family and friends and nuts type two in front of me that want to learn, I’m extremely serious. Like right here, I’m on this little set, makeshift set, putting lessons together to teach people about real estate. Very serious. When I get out here into the, I guess, what most people would call the real world, which it isn’t.
I gotta pretend I’m a zombie just like everyone else. And they’re like, you know, drooling all over myself because then I fit in. And I’m sure all of you feel the same way. So thank you for hashtagging Fox News. I know you guys are watching, and we’re gonna go right here. Stand by. All right, this is out of zero hedge again. Philadelphia’s first republic has been seized by the FDIC.
Admittedly, we were a couple weeks off. Hold on. The FDIC just sees the troubled Philadelphia bank, first Republic First Bancorp, and has struck an agreement for the lender’s deposits and a majority of its assets to be bought by Fulton bank. Now, just so you know how this works out, and we’re going to get to this really cool story. No, I’m gonna wait to tell you that. Republic bank had about 6 billion in assets and 4 billion of deposits at the end of January, according to the FDIC.
The FDIC estimates the failure will cost the deposit insurance fund $667 million. Now, just so you know, the reason why they have to tell you that now is because they’re completely insolvent. They’re having a hard time staying afloat. We’re talking about the FDIC, not just the banks. They’re screwed, too. It’s like Social Security. As the Wall Street Journal reports, first Republic or Republic first. Sorry, I was a foo paw.
Had for months struggled to stay afloat. Around half of its deposits were uninsured at the end of 2023. Now, how do you like that? Just goes to show you that not all deposits are insured. According to FDIC data, its total equity, or assets, minus liabilities, was 96 million at the end of 2023, according to FDIC filings that excluded 262 million of unrealized losses on bonds that had labeled held to maturity, which means the losses hadn’t been counted on its balance sheet.
You know, we’ve been talking about that forever, and people are like, ninja. It doesn’t matter. They’re not going to lose until they have to sell them. And the ninja says, no, no, no. See, there’s sort of a big. It’s sort of a big deal because it means their value, their total net value. When you add up all their assets, or lack thereof, vaporware, it means they’re worth less.
When they need to borrow money from another bank, another bank’s like, no, bueno. No, we don’t lend money to you. That’s how they talk when they don’t lend money. It says now in stock, which was deal. Its stock was delisted from the Nasdaq in August, had been near zero. Republic banks, 32 branches across New Jersey, Pennsylvania and New York, will reopen as branches of Fulton bank. We’re going to get to that story in a second.
On Saturday, depositors of Republic bank will become depositors of Williamsport, Pennsylvania based Fulton bank. The regulator said, you should not be surprised that rates are higher now than they were at the start of the SVB crisis. What? You know who’s not surprised? Ninja Nation. Which means unless banks have hedged hard or dumped their bonds at a loss, they are even more underwater. But it’s not just their bank, it’s everybody’s bank.
And to the fact that last week, seasonally adjusted for non tax season, us banks saw the largest deposit outflows since 911. No, there’s nothing wrong here. Don’t worry about it. You should totally believe those pundits on Fox News and CNN and CNBC and all those places. Your money is safe. Don’t you be some crazy prepper buying gold, silver and bitcoin. That’s just crazy talk. Poppycock. So anyway, let’s get to the story.
So up here in the story, it said something really interesting, and this lines up with the story I’m going to tell you. It said the FDIC seized the Trumbull Philadelphia bank, Republic First Bancorp, and struck an agreement for the lenders deposits and the majority of its assets to be bought by Fulton bank. So I’m going to tell you story and explain how reality works when it comes to the FDIC seizing banks.
So first off, by the time the FDIC seizes a bank, it’s already too late. Things have went to crap in a handbasket. And what they do is they go out and they essentially, I’m not joking, they force other bank to take over that bank. It’s like they use this really cool thing. It’s like blackmail, where they say, sure, you don’t have to take it over if you don’t want to loan money from the Fed.
And that’s what they do. I know it sounds crazy. I know a handful of people that own banks that have been a part of bank seizures in 2008. And every single story, none of them know each other. Every single story is identical. So check this out. Let me tell you about one story. One gentleman was telling me about the bank closures of 2008 around the great financial crisis.
So it wasn’t exactly 2008. The Federal Reserve contacted them and said, we want you to take over this other bank. They said, we don’t want to do that. They’re weak and we’re strong. And they said, okay, yeah, don’t have to. If you enjoy, you know, a load of money from us, borrowing money from us real cheap, you’re going to be bummed. And in a nice way. They forced them to take over this bank, so, all right.
And they also said, they’re like, look, you’re going to get hooked up. We’re going to hook you up with the best, the best assets. You’re going to get crap for pennies on the dollar, but we just need to be able to stabilize the banking system. Now, I’m paraphrasing a lot to protect who told me this? And they said, okay, well, I guess we don’t have a choice. So one day they said, we need two members from the bank board or ownership, you know, executives, two high up people to meet us at this bank at 430 or so in the afternoon.
Now, the FDIC always does this. They always raid the bank within a minute of it closing. I know it sounds crazy. If you only knew the people that I knew and them telling stories, not knowing each other, the emotions that were going through their mind, like when the SWAT teams pulled up, it was, it’s uncanny, it’s unreal. And also, I’m telling the story because I want a lot of people, because I know a lot of amazing people in the banking industry actually follow this channel.
I want you to let me know of the stories down below. Back me up. So the gentleman that was telling me the story says, okay. So I showed up at 430, and there’s this little guy wearing a trench coat, and it was raining and he had an umbrella. He’s like, it’s right out of movie. He reminded him of Rick Moranis from honey, I shrunk the kids. But he’s really serious.
And he walks up and he goes, where’s your other partner? He goes, he’s stuck in traffic. He’s texting me. He’s stuck in traffic. And he goes, we need to do this. We need to do this at 1 minute till he’s like, okay, I don’t have to tell you he’s stuck in traffic because he doesn’t really know what’s about to happen, right? It’s just this little guy in a trench coat, and he’s like, all right, whatever you’re going to do, whatever happens, you stand behind me and you don’t say a word.
I talk, you listen, he’s like, okay. He goes, I guess we have to just do this. So he talks into his watch. He’s like, just like out of spy movie. And all of a sudden, here comes a SWAT team, vehicles both directions. They walk into the bank and he says, remember, don’t say anything. You stand behind me. And he walks in, he goes, this bank is being seized by the FDIC.
No one is allowed to leave. And there’s SWAT members flying in the room. They’re locking doors. And he says, from right now, you are, this bank is ownership of the FDIC. And they’re breaching the safe. They’re breaching this in the IT room. At the same time, SWAT team comes out, we’ve secured the hard drives. This guy is just sitting here going, what in the heck is going on? He’s thinking, man, my buddy needs to see all this.
And no one’s allowed to leave. Now, I’ve heard multiple stories exactly the same way. One of my good friends told me when her bank was taken down in, was it 19 88 89? She said that they were told no one is allowed to leave this building, including all of the people that were banking in the bank. Right. You are going to be here for around 48 hours until we question everybody and go through every file.
Because what they’re doing is they’re locking down things and information so no one can release information outside of the bank electronically. And it’s interesting because people don’t know what’s actually happening right now. First Republican, I guarantee you had that style seizure that happened the other day. That part’s not going to be in the news. Right? Because they don’t want that kind of stuff in the news because it doesn’t bode well for what’s going on in the banking system.
Now, I have heard from one person, they said that was big in the mortgage industry and one of the banks that went down, and they said the number one thing they care about is the depositors. They said that’s the only thing that matters. We don’t care about any ongoing business you have in your wealth management. We don’t care about your mortgage industry. Everything shuts down. It stops right now.
You just, they can all go find another mortgage. Think about that. You’re in the middle of trying to get a mortgage and your bank fails, that you’re going through and you’re out. But we are in a time where the FDIC has already announced that it’s insolvent as of last July. They try really hard to keep out of the news, but, you know, we make sure that it gets to you.
And the top banks, the biggest banks, are having a hard time holding back 3% of your deposits for emergency and paying at the same time higher FDIC insurance limits. All of their bank earnings have been coming out and saying this is straining them. That means that we are on a thread, right. Teetering by a thread. Now, how do you get. Now, this can be some really scary stuff, but I’ve already lived through this because I got ready for that last banking crash in 2006.
We have something much bigger on our hands. And so this is a really neat opportunity to pay off debt and save money. Also buying inflation hedges, which are just rocking. But a lot of people don’t do that. The good news is, if you’re one of those people, type four, if you are, that are saving and getting ready for this, that means you’re not going to have a whole lot of competition.
And quite frankly, if you see any competition, more likely they’re going to be part of ninja Nation. They’re going to be awesome people. Wherever I go around the world and I meet you, there’s a lot of idiots out there right now. Bye. .
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