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Lawmakers praise First Republic sale, but efforts to pass new bank rules are fizzling - TL;DR CNBC

Lawmakers praise First Republic sale, but efforts to pass new bank rules are fizzling

Publishing timestamp: 2023-05-01 16:48:33


Summary

Lawmakers praised the federal takeover of First Republic Bank and its sale to JP Morgan Chase as an example of successful public-private collaboration. Interest in legislation to tighten regulation of banks appears to have waned, and there is little hope for serious banking reforms to come out of Congress this year. However, appetite for banking reform exists outside Congress, and the Federal Deposit Insurance Corporation released a new report outlining various options for deposit insurance reform. The failure of First Republic Bank has sparked debate on Capitol Hill about how best to address threats to the financial system, but it is unclear whether it will be enough to revive interest in legislation to increase regulation of banks or impose stricter penalties on bank executives at failed banks.


Sentiment: MIXED

Tickers: FRCJPM

Keywords: maxine watersus senatejpmorgan chase & copoliticsbusiness newsgovernment and politicswashingtonelizabeth warrenbreaking news: politicsunited states house of representativeswhite houseproducts and servicesbanksfirst republic bankeconomycongressfdic

Source: https://www.cnbc.com/2023/05/01/first-republic-congress-reacts-to-bank-failure.html


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