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blue-shirt-guy t1_jdv83b8 wrote

Reply to comment by Merteswagger in First Republic stock up 24% as FR deal for Silicon Valley Bank lifts banks - ONE SICK BANK BOUGHT ANOTHER SICK BANK. FDIC easy to clean both by No_Flatworm8955

Yeah I think most people are aware it’s two different banks. It creates confidence that this can be worked out and (hopefully) prevent further bank runs.

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Merteswagger t1_jdv8bjw wrote

Yeah I get why the news is propping-up FRC, but he added that ‘one sick bank buys another’ when there hasn’t been any drama around first citizens lol

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dbdank t1_jdvi0bu wrote

But if FRC gets bought out their stock will go down, so why is this confidence inspiring?

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HealthyStonksBoys t1_jdvohzx wrote

Actually the cost to buy FRC would be decent their asset sheets are not like SVB

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dbdank t1_jdvooix wrote

You think better than current stock cost?

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HealthyStonksBoys t1_jdvq4fy wrote

Yes I can’t say exactly what they’d agree but FRC is a high quality Bank with great reputation with unfortunate circumstances

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blue-shirt-guy t1_jdvt66q wrote

Confidence that contagion can be avoided and future bank runs not as big of a threat since bank clients see positive outcome from the SVB situation. Less bank run threat is good for First Republic.

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