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JPMorgan deal: competitive bidding process?

JPMorgan deal: competitive bidding process?

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MB

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02 May 23
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From the link below:

"In addition to JPMorgan, PNC and other banks bid on Sunday to the FDIC to buy the bank in “a highly competitive bidding process,” the FDIC said in a statement.

Not everyone is buying that.

“It’s clear that all the ‘bids’ for First Republic Bank were never really real,” according to a tweet from The Kobeissi Letter, an industry commentator on global capital markets. “First Republic tried to sell itself for weeks, no one offered … Multiple ‘bidders’ were said to be in the process, but the FDIC had to seize First Republic. Finally, the FDIC agreed to cover $13 billion in losses and loan JP Morgan $50 billion to buy it. This wasn’t an auction, the FDIC had to break rules and compensate JP Morgan to ‘save’ the system.”

https://moguldom.com/443294/u-s-government-seizes-first-republic-bank-in-another-bank-failure-sells-it-to-jp-morgan-chase/?utm_source=drip&utm_medium=email&utm_campaign=U.S.+Government+Seizes+First+Republic+Bank+In+Another+Bank+Failure%2C+Sells+It+To+JP+Morgan+Chase&utm_content=U.S.+Government+Seizes+First+Republic+Bank+In+Another+Bank+Failure%2C+Sells+It+To+JP+Morgan+Chase

JPMorgan Chase owns most of the Federal Reserve System which raised interest rates that caused these bank failures. Now JPMorgan Chase is gobbling up other banks. Was it a competitive bidding process or is that all a sham?

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