'The failure of First Republic Bank shows how deregulation has made the too big to fail problem even worse,' Sen. Elizabeth Warren said.
‘The failure of First Republic Bank shows how deregulation has made the too big to fail problem even worse,’ Sen. Elizabeth Warren said.
“The failure of First Republic Bank shows how deregulation has made the too big to fail problem even worse,” Warren , who has long criticized Trump-era deregulatory moves, tweeted after the announcement. “A poorly supervised bank was snapped up by an even bigger bank—ultimately taxpayers will be on the hook. Congress needs to make major reforms to fix a broken banking system.”
Biden himself defended the deal on Monday, arguing that it would shore up the banking system without costing taxpayers money. “These actions are going to make sure the banking system is safe and sound, and that includes protecting small businesses across the country,” Biden said. “Depositors are being protected, shareholders are losing their investments and, critically, taxpayers are not the ones who are on the hook.
“I don’t really care about gossip from other people,” he said in response to a reporter’s question about unnamed critics charging that the purchase was unfair. “We need large, successful banks in the largest and most prosperous economy in the world. We have capability to help our clients who happen to be cities, schools, states, hospitals, governments. We bank countries, we bank the IMF, we bank the World Bank.
The bank said it would record a gain of $2.6 billion from the deal but expects to spend $2 billion on restructuring through the end of next year.
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