Source: Bloomberg
Author: Annie Massa, Katherine Doherty, Hannah Miller
JP Morgan's agreed to acquire FIRST Republic Inc. hours, and the participants of Milken Institute Global Conference, California started a new day under a gazebo.
In a group, Jane Fraser, CEO of Citi Group, praised the structure of the financial system and said that the first trust bank was acquired and eliminated a major uncertain source.
But over time, the response of bankers and trading partners is more complicated.For some people, the two -month -old disturbance of banks lasted for two months, and it reached a climax after the first trust bank took over by JP Morgan Chase.For others, the anxiety that may continue in the crisis -and the fear of the problem of the outbreak of commercial real estate -hitting the heart, like the dark sky shrouded in the Fuli Mountain Villa.
The banking executive described the transaction as a stable army.Jayee Koffey, a global supervisor and chief corporate affairs officer of New York, said toughness is the keyword of the year.When the First Trust Bank was crumbling in March, some banks invested a total of $ 30 billion in cash. Her banks were one of them; she said that this was "necessary."
However, she pointed out that regulators need to investigate the matter in depth.Koffey said in an interview that it is necessary to ensure that the outside world understands the fundamental reason.
The scale of the closure of the first trust bank is the second largest in American history. The bank is also the fourth regional bank that has fallen since March.After the private rescue failed to fill the loopholes on the bank's balance sheet headquarters in San Francisco, and the customer continued to withdraw the deposit, Morgan Chase agreed to acquire the First Trust Bank.
Millennia Capital management partner Joe Zhao said in an interview at the Milken conference that the response to the acquisition of JP Morgan Chase was completely different from the extensive turbulence caused by the closure of Silicon Valley in March.Zhao said that as the stock of the First Trust Bank plummeted for several weeks, many venture capitalists and startups opened multiple bank accounts and were attracted by fintech banks.(FDIC) $ 250,000.
He said that most venture capital companies and technology entrepreneurs have been prepared for this.
Jefferies Financial Group Inc. Stock Capital Marketing Director Ashley Walker said that the next time after the closure of Silicon Valley Bank, it helped reduce the shock wave to the market.
She said that people think these are isolated incidents, not systemic risks.
The tone of other participants is more conservative.Andrew Milgram, chief investment officer of Marblegate Asset Management, said in a group that the banking industry is not transparent enough, especially in loans.He said that strengthening the censorship of banks is a cautious approach, which in turn increases capital costs and leads more companies to sell assets -this is a potential opportunity for investing companies that are trapped.
Stephen Meade, an entrepreneur who claimed to be the bullseye guy, even more blunt: this matter is not over yet.He said that these closed banks closed down due to their bond investment portfolio. In more regional banks with similar balance sheets, the situation will become worse.
