Does Joe Biden have the chops to face down multiple global threats and secure our borders? And does his economic team, led by Treasury Secretary Janet Yellen, understand what could be in store for …
There are leaders who rise to the moment. Think Churchill and Roosevelt facing down the Nazi threat. Ronald Reagan‘s famously accurate assessment of the former Soviet Union as an “evil empire.”
As I write this, another bank, First Republic, is heading for government receivership. As I reported earlier this week on Fox Business, execs at all the big banks say First Republic is a goner, if not now, someday soon, because itsYet Yellen’s leading a last-ditch futile effort to save it for no other reason than to save face. She wants to fool the American people into believing the banking system and even the entire economy, is fine, when it’s not.
These bank executives also say the right thing for Yellen & Co. to do is put First Republic out of its misery, and into government receivership where depositors are paid off at the $250k insurance limit and no more. Shareholders are wiped out, its assets are sold at a discount. But that’s what is supposed to happen when you take too much risk.
First Republic almost became one of those failures along with Silicon Valley and Signature banks in the early stages of the bank tumult. At Yellen’s bequest, execs at JPM, BofA etc., extended the lender a lifeline,Now Yellen wants a do-over for First Republic, I am told, aka another private sector bailout. The bankers are balking because, unlike Yellen, they can read a balance sheet and First Republic’s is a zombie, they say, that is nearly impossible to be saved.
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