| fisher22 |
05-04-2023 05:22 PM |
Quote:
Originally Posted by jyl
(Post 11987669)
There were supposedly multiple banks bidding, but JPM won. That's interesting because JPM already has over 10% of the country's deposits and is prohibited from getting larger (in deposits) without special permission. Something caused the Fed/FDIC to grant that special permission. Either JPM's bid was much better than the other bids (could be price bid, or scope of what JPM was willing to take), or other banks saw something that caused them to drop out, or there is something tricky enough here that Fed wanted the strongest bank in the country to deal with it.
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And just like that it is ok for a bank to go over 10% US deposits. I don't necessarily disagree with that, but it's interesting.
JPM is a powerhouse and they know what's going on in the economy before anyone else.
That's why every quarterly earnings season, they report in the first group. Also, we probably don't want to mess with them. At one point they bailed out the US Government. Some say they saved the country.
https://historydaily.org/panic-of-1893
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