A US Bank to Purchase First Republic Bank’s Assets: Report
TEHRAN (Tasnim) – JP Morgan Chase & Co, the biggest US bank by assets, said on Monday afternoon it will buy most of First Republic Bank's assets after US regulators seized the troubled bank.
The collapse marks the third major US lender to fail in less than two months, after a week of panic which saw First Republic lose 75% of its market value as its future turned murkier.
Confidence in the banking sector has now more weakened, which means that investors should expect for financial markets to remain on the defensive, analysts say.
Assets such as the US dollar and Japanese yen will be on the radar as traders look for an asset of safety, Reuters news agency reported.
Gold prices in particular have been on a gradual incline for much of 2023 so far, and such worrying indications of more stress in the banking sector can be viewed as a potential catalyst to add the needed fuel to a rally that has run out of fumes in recent weeks."
As controversial as it will be, bitcoin price reaction should also be watched in the event that this confidence crisis leads traders to seek an unconventional asset.
