The banking industry is in turmoil as First Republic Bank Teeters on the brink Of bankruptcy are your savings at risk Watch our exclusive report now to find The truth stay informed on the latest Breaking news by tapping subscribe below And enabling your notifications Before I get to that our widespread food Shortage is next it looks like it it Feels like it'll hit at any moment are You ready have you stocked up for at Least three months if not click more Below and check out preparewithgary.com For new lower prices save two hundred Dollars on a three-month emergency food Kit plus free shipping visit Preparewithgary.com right now and save Two hundred dollars per kit now back to The news The financial world is collectively Holding its breath in the wake of a Disastrous report from First Republic Bank the bank revealed that it lost over 40 percent of its depositors causing a Massive drop in stock prices and raising Fears of a broader financial crisis First Republic Bank is headquartered in San Francisco and specializes in Catering to wealthy customers with Account balances over 250 thousand Dollars however last month saw the Sudden loss of investor confidence Gripping the financial sector resulting In many clients withdrawing their funds
In Mass according to First Republic Quarter one earnings report its deposits Shrunk from 176 billion on December 31st To just 104 billion on March 31st as a Result the federal government stepped in To enable a deal with large financial Institutions such as Wells Fargo JPMorgan Chase Bank of America and Citigroup loaned First Republic Bank 30 Billion dollars to maintain solvency the Deposits would have declined by at least 57.8 percent without this agreement However the bank's stock price is still Plummeted by over 90 percent take a look The economy is a major issue in the Presidential race and this morning new Concerns from the financial World First Republic a well-known Regional Bank saw Its stock dropped nearly 50 percent Yesterday after announcing a recent 100 Billion dollar drop in deposits now this Despite the billions it received from The nation's largest banks during last Month's banking turmoil NBC's Brian Chung is here with more to put it in Perspective okay this is confusing a Hundred billion dollars sounds like a Whole lot of money just put it in Perspective for us yeah well it was About 40 percent of their overall Deposits so a lot of clients are taking Money out of the bank and as you Mentioned Hoda it's despite the fact That 11 of the largest banks put in 30
Billion dollars when a lot of the Banking issues were cropping up about Six weeks ago when you recall Silicon Valley Bank and also Signature Bank Ultimately went under now First Republic They haven't gone under there's no talk About that happening right now but when You see that 40 of the money was going Out the door you're wondering if we Really are out of the woods after the Banking issue is about six weeks ago Well that's right to try and starve off Further disaster First Republic Bank is Taking drastic measures such as Restructuring its balance sheet reducing Employee headcount and consolidating Office space however analysts predict These measures might not be enough to Stop a broader financial crisis given The alarming decline in Bank liquidity In addition the sudden collapses of Silicon Valley Bank and Signature Bank Last month revealed that many account Balances also exceed the 250 thousand Dollar Deposit Insurance threshold Financial Regulators thus secured Insured and unsecured accounts to Prevent additional bank runs out of fear Of wider contagion now there's scramble To cover the losses for First Republic Bank take a look As David reported on Tuesday the plan Was basically to convince the banks Who've already put in 30 billion into
First Republic in the former deposits to Once again help out by by overpaying Essentially for bonds that are in first Republic's balance sheet so paying Higher than market value which you know On its face was a tough ask yeah and so My question uh you know to the advisors Was why would the banks go for it and The answer is you know the uh coercion That was uh said to happen is basically Uh the pitch you know if you don't do This now and and take a hit uh to the Tune of several billion dollars in total For all the banks uh then when this Thing goes into receivership uh the FDIC Special assessment fees that you're Gonna have to pay are could be the tune Of 30 billion dollars right so it is in Your financial interest to save First Republic now that was first Republic's Pitch after he reported that story the Shares absolutely tanked so if you're The big Banks you're going it's obvious That the market hates the idea of us Getting more involved here they already Feel probably like they've been tainted By giving the 30 billion and now there's Questions about whether they can even Get that back and now they're they're Kind of looking at this like a lose-lose Well you know Janet yellen's mixed Signals on whether the government will Continue backing both insured an Uninsured deposit has raised concerns
About increased consolidation and job Losses in the sector meanwhile monetary Stimulus rollback efforts by the Federal Reserve have led to cash reserves in the Banking system being depleted with Assets being two trillion dollars lower Than their Book value The financial meltdown of First Republic Bank is a wake-up call for investors Everywhere we must be vigilant in Safeguarding our assets and monitoring The banking sector's stability it's Worth noting that conservative Principles such as sound financial Regulation and a strong economy are Necessary to ensure investment security A return to these principles will be Necessary to prevent further bank Failures and protect the financial Well-being of Americans let's continue The conversation in the comments below For the next News Network I'm Gary Franchi thank you thank you for watching That report I'd like to ask you a Question are widespread food shortages The next big thing as far as I can tell It looks like it whenever I look around It seems like everything is going to Come crashing down at any moment you're Ready aren't you are you prepared with At least three months worth of food Stocked up in case of an emergency well You can find new lower prices for my Patriot Supply if you tap more below and
Go to preparewithgary.com where you'll Find new lower prices from my Patriot Supply in addition save two hundred Dollars on a three-month emergency food Kit and get free shipping as well There's enough food in this kit to Nourish one person for a solid three Months the kit includes breakfast Lunches dinners drinks and snacks it Provides you with 2 000 calories a day Which will keep you full and satisfied Throughout the day now is the perfect Time for you to save two hundred dollars On our prepare with gary.com kit the Kits will be shipped to you fast and Free of charge that's prepared with Gary.com we'll see you the next report For the next News Network I'm Gary Franchi You possess the power to impact the Global narrative please share this Report and to get more videos like this Become a Next News subscriber by Clicking the link below thank you for Watching the next News Network Foreign