Happy St. Patrick’s Day! Dan O’DeFrancesco (we’re all Irish today) in NYC. Goldman Sachs’ decision to charge employees for coffee might not be that outrageous after all! An extremely valuable baseball team makes its players pay for their own in-flight wifi.
Fun fact of the day: St. Patrick was actually born in Britain.
Today, we’ve got stories on tips for landing an internship at Goldman Sachs, why the VC community is turning on itself, and where you should move if you want the most bang for your buck.
But first, bankers! Assemble!
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1. Banks to the rescue.
It’s a bird! It’s a plane! It’s the 11 biggest US banks to the rescue!
Did you feel that? That’s the weight of the biggest banks in the country putting their proverbial foot down.
The largest US banks — headlined by Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo — just pledged a total of $30 billion in deposits to First Republic Bank.
The move was made to not only stabilize First Republic Bank — which recently saw its credit rating downgraded as its share price dropped and clients pulled money — but also to show confidence in the wider banking ecosystem.
As detailed in a release announcing the news, the 11 banks, which also included Goldman Sachs and Morgan Stanley, believe the move “demonstrates their overall commitment to helping banks serve their customers and communities. Regional, midsize and small banks are critical to the health and functioning of our financial system.”
It’s a fitting end to what was one of the wildest banking weeks in recent memory. What started off with a crisis focused on a specialized, albeit powerful bank, eventually spilled out to regional banks across the country.
While the move should calm the markets, it’s not a long-term solution, per se. The money is committed to First Republic for at least 120 days, which puts us at about mid-July. I can’t imagine the big banks looking to pull the rug out from First Republic four months from now, but this money was a deposit, not a donation.
As Insider’s Hayley Cuccinello reports, First Republic’s problems are far from over. The deposits are moreso a lifeline, not a fix-all.
I also wonder what this means for Silicon Valley Bank. (Remember them?) The bank, errr the FDIC, is still looking for a buyer. But now that some of the potential buyers have all pledged significant capital to First Republic, I wonder if that diminishes its chances of getting acquired.
about how big banks came to the rescue of First Republic with $30 billion in deposits.
But here’s why it’s not smooth sailing for First Republic.
PS — If you’re thinking about emailing me that The Avengers are in the Marvel universe and Superman is in the DC universe, please don’t. Go outside and touch some grass instead.
In other news:
Matt Kennedy, Courtesy …read more
Source:: Business Insider
