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WHAT WILL HAPPEN NOW THAT FIRST REPUBLIC WAS SOLD TO J.P. MORGAN CHASE · Earn Your Leisure

• 0:00
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 0:03
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 0:07
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 0:11
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 0:15
  Speaker 1: some of the heinous migrant criminals caught because of President
• 0:19
  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
• 0:23
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 0:28
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 0:31
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 0:35
  Speaker 1: are here illegally, your next you will be fined nearly
• 0:39
  Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
• 0:43
  Speaker 1: never return. But if you register using our CBP home
• 0:46
  Speaker 1: app and leave now, you could be allowed to return legally.
• 0:50
  Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
• 0:55
  Speaker 1: border and families will be protected.
• 0:57
  Speaker 2: Sponsored by the United States Department of Homeland Security.
• 1:00
  Speaker 3: Let's talk about the big news of the day. JP Morgan,
• 1:04
  Speaker 3: Big bank, take little.
• 1:07
  Speaker 4: Bank one another one literally.
• 1:09
  Speaker 3: H JP Morgan has taken over control of First Republic Bank.
• 1:15
  Speaker 3: First Republic Bank seized by regulators. So the dale finally
• 1:19
  Speaker 3: was approved by FDI C one hundred. JP Morgan is
• 1:25
  Speaker 3: taking on one hundred and three billion in deposits.
• 1:29
  Speaker 4: I believe.
• 1:31
  Speaker 3: Eighty four branches or something like that, and eight states
• 1:34
  Speaker 3: will now reopen.
• 1:38
  Speaker 4: Today as JP Morgan James Banks.
• 1:41
  Speaker 3: Okay, So yeah, so let's let's really get into this situation.
• 1:49
  Speaker 5: Another example of you should only invest in the top
• 1:51
  Speaker 5: two in the space. JP Morgan is number one. Bank
• 1:55
  Speaker 5: of America is number two. I think Brian's a great CEO,
• 1:57
  Speaker 5: but Bank of America stock has not moved that much,
• 2:00
  Speaker 5: also living through their last recession. What you see normally
• 2:04
  Speaker 5: is that smaller banks get acquired by bigger banks.
• 2:08
  Speaker 4: At some point.
• 2:08
  Speaker 5: We'll go in deep and in detail about FED now,
• 2:11
  Speaker 5: but FED now has selected who their partners will be.
• 2:14
  Speaker 4: JP Morgan will be one of them.
• 2:17
  Speaker 5: So with the acquisition of or so, total win for
• 2:20
  Speaker 5: JP Morgan because now they get to ensure some safety
• 2:23
  Speaker 5: and it was needed. He stated that this level of
• 2:26
  Speaker 5: like bank collapses over this is not two thousand and seven,
• 2:28
  Speaker 5: in two thousand and eight, but we're going to see
• 2:30
  Speaker 5: the bigger banks get larger and the mid sized banks
• 2:35
  Speaker 5: are going to go away as a result, like P
• 2:36
  Speaker 5: and C got punished today. So it's no way that
• 2:41
  Speaker 5: you can. My baby's gonna call me. There's no reason
• 2:46
  Speaker 5: for you to invest in the bank number five through
• 2:48
  Speaker 5: ten if JP Morgan is sitting up there at number
• 2:52
  Speaker 5: one when they have all the favor of monks government.
• 2:55
  Speaker 5: And I want to be very clear when I say this,
• 3:00
  Speaker 5: the banking sector is not a great sector to invest
• 3:03
  Speaker 5: in anyway. There's only about four or five banks you
• 3:05
  Speaker 5: should invest in long term JP maybe one of them
• 3:08
  Speaker 5: if you're older. I wouldn't do it right now. But
• 3:11
  Speaker 5: this is a classic case of we're going to see
• 3:13
  Speaker 5: masses consolidation or doing this great reset depression period. We're
• 3:17
  Speaker 5: going to see that the market is going to go
• 3:18
  Speaker 5: down and the big banks are going to get bigger
• 3:20
  Speaker 5: resur results.
• 3:21
  Speaker 4: Yeah, and we saw this happening. This wasn't like surprise,
• 3:25
  Speaker 4: this came out of nowhere, Like we saw this happening
• 3:27
  Speaker 4: when we saw what happened with Signatury, and we saw
• 3:29
  Speaker 4: it happened with SVB. When people make a run on
• 3:33
  Speaker 4: the bank, right when they start withdrawing their deposits, that's
• 3:38
  Speaker 4: a fire, like that's the alarm, Like you got to
• 3:39
  Speaker 4: see that. And so when people saw that, they were
• 3:42
  Speaker 4: looking around to see which bank it's acceptable for another
• 3:47
  Speaker 4: another run, and right away people pinpointing that first Republic
• 3:51
  Speaker 4: would be next. Three weeks ago we covered it because
• 3:54
  Speaker 4: the big banks, the Big five, put thirty billion dollars
• 3:58
  Speaker 4: into these banks. Yep, that didn't help because during the
• 4:03
  Speaker 4: quarter last Monday, they reported that they lost one hundred
• 4:06
  Speaker 4: This is the first Republic. They lost one hundred billion
• 4:09
  Speaker 4: dollars worth of deposits during the first three months of
• 4:11
  Speaker 4: last year. This stock was down ninety seven percent. I
• 4:15
  Speaker 4: mean it was on a death spiral. This this is
• 4:17
  Speaker 4: the exact definition of a death sproal. Ninety seven percent
• 4:20
  Speaker 4: in three months. Of course, of course, what did we
• 4:26
  Speaker 4: think was going to happen? Right? It just so happened that.
• 4:30
  Speaker 4: I mean it's probably been going on in the works
• 4:31
  Speaker 4: because the number one depositor when they were putting money
• 4:34
  Speaker 4: into it was JP Morgan, and so they brought the government,
• 4:37
  Speaker 4: looked at fdi C said look, this is about the fold.
• 4:39
  Speaker 4: Who can help. Who's the number one depositor? Let's call JP.
• 4:43
  Speaker 4: They saved the day. They did it, just in the
• 4:45
  Speaker 4: niggad time before Monday morning, business open, and now those
• 4:48
  Speaker 4: branches that you know were once First Republic on Friday
• 4:53
  Speaker 4: are now JP Morgan. The problem is, so a lot
• 4:56
  Speaker 4: of people are like, well, what does this mean? What
• 4:58
  Speaker 4: does this mean? Doesn't mean much for the people who
• 5:00
  Speaker 4: had their money inside the dead Your money was there,
• 5:03
  Speaker 4: You're fine, right. The problem is what happens to the
• 5:06
  Speaker 4: people who were invested in the stock. Those people are
• 5:10
  Speaker 4: in trouble because even now if you look at it,
• 5:14
  Speaker 4: they don't have an idea. So JP Morgan did not
• 5:16
  Speaker 4: assume First Republics corporate debt or preferred stocks. So neither
• 5:20
  Speaker 4: JP or the fdi C have explicitly explicitly said that
• 5:24
  Speaker 4: they're going to purchase the means of First Republics common
• 5:27
  Speaker 4: shareholders the stocks. So if you had stock in it,
• 5:32
  Speaker 4: this is an unfortunate time. So what does that mean.
• 5:33
  Speaker 5: If it's over, it's going to go on receivership at
• 5:37
  Speaker 5: some point you make it a small settlement opinions.
• 5:39
  Speaker 4: On a dollar.
• 5:40
  Speaker 5: A few of you hear me this morning. The only
• 5:42
  Speaker 5: thing I can say is I'm sorry, not a time for.
• 5:45
  Speaker 4: Because even in the in the order of repayment, the
• 5:48
  Speaker 4: shareholders are last right, so it first. It goes to
• 5:51
  Speaker 4: the depositors, then it goes to the unsecured creditors, then
• 5:55
  Speaker 4: subordinated debt. Then after all that, then it's like, all right,
• 5:59
  Speaker 4: let's see if we can pay the shareholders back, which
• 6:02
  Speaker 4: it doesn't look like it's going to happen. So part
• 6:04
  Speaker 4: of the settlement, which chase, it has nothing to do
• 6:06
  Speaker 4: with all right, we're going to pay back to the shareholders.
• 6:08
  Speaker 4: So if somebody had This episode is brought to you
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• 8:01
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 8:04
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 8:09
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 8:13
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 8:17
  Speaker 1: some of the heinous migrant criminals caught because of President
• 8:21
  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
• 8:24
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 8:29
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 8:33
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 8:36
  Speaker 1: are here illegally, your next you will be fined nearly
• 8:40
  Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
• 8:44
  Speaker 1: never return. But if you register using our CBP home
• 8:48
  Speaker 1: app and leave now, you could be allowed to return legally.
• 8:51
  Speaker 1: Do what's right, leave now. Under President Trump, America's laws,
• 8:56
  Speaker 1: border and families will be protected.
• 8:59
  Speaker 2: Sponsored by the State Department of Homeland Security.
• 9:01
  Speaker 4: Shares in First Republic Unfortunately. I mean, if you're paying
• 9:04
  Speaker 4: attention to your account, right and you're watching it go
• 9:07
  Speaker 4: down sixty percent, definitely got ninety. I'm not sure this
• 9:12
  Speaker 4: is the time when you're like, all right, let's see
• 9:14
  Speaker 4: if people go back. At that point, it should be like, hey,
• 9:18
  Speaker 4: there's there's a huge issue going on. There, or you
• 9:19
  Speaker 4: should be alert to that, or you should have maybe
• 9:21
  Speaker 4: a stop balls that would probably be the best thing.
• 9:24
  Speaker 4: And uh, again it's unfortunate.
• 9:26
  Speaker 5: And then also if you invest it in the stock,
• 9:28
  Speaker 5: I have to actually where you like actually banking with
• 9:31
  Speaker 5: the bank. I never have met one person that said
• 9:34
  Speaker 5: they banks with FRC ever. Like it goes back to
• 9:38
  Speaker 5: the classic example like sometimes if you're not using the
• 9:41
  Speaker 5: product that you're investing in, it's not a good investment.
• 9:44
  Speaker 5: If you don't know anyone else that's using it, not
• 9:46
  Speaker 5: the best investment. Once again, we're they top to in
• 9:49
  Speaker 5: the space. No, if they have a competitive advantage that
• 9:51
  Speaker 5: no one else has. No, like the easy Games of
• 9:54
  Speaker 5: twenty twenty are going companies that are constructed horribly should evaluations,
• 10:01
  Speaker 5: not the best customer base, they're going.
• 10:03
  Speaker 4: To go away shad. They said, okay, can you look
• 10:06
  Speaker 4: up if you're okay, he's okay, We're gonna get through this. No,
• 10:10
  Speaker 4: but this is the biggest collapse since two thousand and
• 10:15
  Speaker 4: Washington Mutual. Here is what they have in common. Who
• 10:18
  Speaker 4: was who did who purchased Washington Mutual? Kobe? I mean no,
• 10:24
  Speaker 4: who poaches Washington? JP Morgan Cheer there you go common theme, right,
• 10:30
  Speaker 4: common theme right for that was beer Sterns who pursues them?
• 10:35
  Speaker 4: JP Morgan chase common theme. Right. So when we talk
• 10:38
  Speaker 4: about pick ban getting big, the biggest just got bigger.
• 10:42
  Speaker 5: The bussor does not get a chance to bail somebody
• 10:43
  Speaker 5: out's going to go to JP. They have preferred treatment
• 10:48
  Speaker 5: amongst at a reserve in our United States government, and
• 10:51
  Speaker 5: you have to give them credit. Jamie is probably one
• 10:53
  Speaker 5: of the smartest bankers since like this is like easy pickings,
• 10:58
  Speaker 5: like when Lebron went through what he went through Miami
• 11:01
  Speaker 5: and prepared him from when he played the Golden State Wars,
• 11:04
  Speaker 5: Like this is easy money for Jamie. He's been through
• 11:07
  Speaker 5: this before. Two thousand and seven and eight were way worse.
• 11:09
  Speaker 5: This is an easy pick up, easy acquisition, game set match.
• 11:13
  Speaker 5: Banking is not the best sector to invest in. Only
• 11:15
  Speaker 5: do it if you're older, But if you are going
• 11:17
  Speaker 5: to do one, do so with JP Morgan.
• 11:19
  Speaker 4: I'm not just saying that because it's not endorsed, but
• 11:22
  Speaker 4: I mean just historically, if you look at even the
• 11:24
  Speaker 4: two thousand eight situation, the row that Jamie Diamond played
• 11:27
  Speaker 4: and pretty much saving the banking system. I mean again
• 11:31
  Speaker 4: here he is again getting another acquisition to add to
• 11:34
  Speaker 4: the portfolio. So yeah, the big, the big, the big
• 11:38
  Speaker 4: bank just took on another little bank.
• 11:40
  Speaker 3: Literally, yeah, what about what about Jim Kramer?
• 11:46
  Speaker 4: Was that? Was he being sarcastic? What are you doing?
• 11:50
  Speaker 3: On March tenth? He said, First Republic is the new focused,
• 11:58
  Speaker 3: very good bank.
• 12:01
  Speaker 4: He's had a history of this man, He's had a
• 12:04
  Speaker 4: history since So it's crazy. It's crazy because you bring
• 12:07
  Speaker 4: him up and again, this is a legend. We're not
• 12:09
  Speaker 4: throwing there on his thing. But since the moment he
• 12:10
  Speaker 4: cried when he did the crying thing with Meta, Yep,
• 12:13
  Speaker 4: he cried on camera because he I believe it was
• 12:15
  Speaker 4: stock and he cried, Like since that moment it went
• 12:17
  Speaker 4: up one hundred and seventy eight percent. You got one down.
• 12:20
  Speaker 4: But like now that they've had a whole meme, like
• 12:22
  Speaker 4: I told you, they created a whole ETF with that,
• 12:24
  Speaker 4: it goes to the opposition everything he says in that the
• 12:26
  Speaker 4: ECF is actually performing well. But what he said, I'm like, wait,
• 12:31
  Speaker 4: was he serious? Because this is March tenth was probably
• 12:33
  Speaker 4: the time when we were talking about all right, here
• 12:35
  Speaker 4: comes the big banks to come help them out and
• 12:37
  Speaker 4: add thirty billion in deposits to keep this one afloat.
• 12:40
  Speaker 4: I'm not sure what he saw.
• 12:44
  Speaker 5: I always say it any time, and we saw with
• 12:47
  Speaker 5: Stevendy like JJ Reddick lit up Steven Day saying, hey
• 12:50
  Speaker 5: and listen, I'm having a hard time just driving with
• 12:52
  Speaker 5: a tornum like let alone Kawhi playing. When you're doing
• 12:57
  Speaker 5: media that much five days a week, it's very hard
• 13:00
  Speaker 5: to be able to do research at the same time.
• 13:03
  Speaker 4: So and Jim's getting older.
• 13:05
  Speaker 5: I mean, he was gracious when I met him at
• 13:07
  Speaker 5: an honor to meet him last year, But doing the
• 13:10
  Speaker 5: show every single day doesn't give you enough time.
• 13:12
  Speaker 4: To do research. Even doing the show weekly, it's tough
• 13:14
  Speaker 4: for us. So we got some game playing to the
• 13:18
  Speaker 4: Blue Games. He got to tour m c l This
• 13:21
  Speaker 4: is but show must go on.
• 13:24
  Speaker 5: Speaking of which, get your tickets to Market Money's Live
• 13:27
  Speaker 5: in London. He got there and me and Troup is
• 13:32
  Speaker 5: having a little conversation before the show start. Y'all better
• 13:34
  Speaker 5: get these tickets because now I get to be in
• 13:35
  Speaker 5: charge of pricing, right, Okay, all is gonna be different,
• 13:43
  Speaker 5: and so what got us? So get your tickets now
• 13:46
  Speaker 5: so I can teach you how to master this market
• 13:48
  Speaker 5: before it turns over on you.
• 13:52
  Speaker 3: My graduates from my school being forced back.
• 13:55
  Speaker 4: Drop drop, Mike, drop Drop.
• 14:10
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 14:14
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 14:18
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 14:22
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 14:26
  Speaker 1: some of the heinous migrant criminals caught because of President
• 14:30
  Speaker 1: Donald J. Trump's leadership. I'm Christy Noman, the United States
• 14:34
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 14:38
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 14:42
  Speaker 1: one hundred thousand illegal aliens.
• 14:44
  Speaker 2: Have been arrested.
• 14:45
  Speaker 1: If you are here illegally, your next you will be
• 14:49
  Speaker 1: fine nearly one thousand dollars a day, imprisoned and deported,
• 14:53
  Speaker 1: you will never return. But if you register using our
• 14:56
  Speaker 1: CBP home app and leave now, you could be allowed
• 14:59
  Speaker 1: to return legally. Do what's right. Leave now. Under President Trump,
• 15:05
  Speaker 1: America's laws, border and families.
• 15:07
  Speaker 2: Will be protected. Sponsored by the United States Department of
• 15:10
  Speaker 2: Homeland Security,