Warren to the Rescue of the First Republic Bank

Monday Morning and the stocks of the First Republic Bank are going down. The Dow Jones Industrial Average rose over 1% in the first hour. Banks stocks like JPMorgan Chase, Citigroup, Bank of America, and Wells Fargo, gained along with other Dow components.

What a Monday of the financial world

Warren Buffett is in talks with the Federal government

Warren Buffett is right now in convesations with the Federal goverment about regional bank rescue plans.

Warren Buffett is reportedly considering taking a role in the White House’s efforts to help the nation’s regional banks.

The talks come as the administration is preparing to begin "Operation Choke Point," a controversial initiative that would force banks to tighten their credit standards for small businesses.

Warren Buffett is reportedly focusing on regional banks and their need for access to capital in order to survive the economic crisis.

It is unclear whether the two sides have reached an agreement yet, but the talks are reportedly ongoing.

Legendary investor Warren Buffett is reportedly in discussions with the Federal government regarding potential rescue plans for regional banks in the midst of the current economic crisis.

Rescue Master plan for banks to Stop the market

The Oracle of Omaha has engaged in talks with high-ranking Biden administration officials over the weekend to discuss ways to give regional banks the access to capital they need to stay afloat.

The conversations come in the wake of the White House's announcement of “Operation Choke Point”, a policy that mandates banks to tighten their credit standards for small businesses. Buffett’s prior experience in rescuing banks in times of need, such as when he provided Bank of America with a $5 billion investment

Some real examples of banks and financial subsidiaries and some regional banks that had to take action to stop this frenzied wave of insecurity. It is not a real sensation, it is happening and the government had to take concrete actions, announcing some preventive measures. This type of entities with corporate background and trajectory are being put to the test.

Flagstar Bank

Flagstar Bank a subsidiary of New York Community Bancorp, will buy Signature Bank's deposits. Meanwhile,

SVB Financial

SVB Financial is seeking bankruptcy protection. Its venture capital and investment banking assets may come up for sale but reports say First Citizen Bank could swoop in for the rescue.

Bank deposit outflows have stabilized for regional banks, according to reports. Nonetheless, a regional bank group wants the FDIC to provide a two-year guarantee on deposits to stop panic flows.

UBS to the Rescue

UBS will acquire distraught Credit Suisse (CS) for $3.2 billion. Shareholders will receive one UBS share for every 22.48 CS shares.

First Republic Bank (FRC) drops another 13% after S&P Global Ratings lowered its credit rating for the second time in a week. FRC could be in negotiations to raise money through a private stock sale option.

Why is this sequence of cases happening at the moment? Banks with several years in the market are beginning to flounder while other options such as cryptocurrencies and certain investment funds are proving to be safer in the short term.

The future of the banking industry will depend on the joint measures that can be taken by governments and regional and global financial institutions.