Washington, DC – Today, U.S. Representative Young Kim (CA-40), who serves on the House Financial Services Committee, released the following statement on the announcement of JP Morgan Chase taking over First Republic Bank following an auction put on by the Federal Deposit Insurance Corporation (FDIC).
“I am pleased that a successful private sector bidder is taking over First Republic Bank and working to avoid further uncertainty in our banking system and minimize risk to taxpayers. Questions remain on why the FDIC couldn’t use the same tools to resolve the situation with Silicon Valley Bank without using emergency powers. The failure of three California banks is a testament to inflation having real-life and long-term consequences. Instead of working to combat inflation, the Biden administration missed crucial time to tame inflation, calling it ‘transitory’ in nature and enacting expansionary fiscal policies that made inflation worse,” said Rep. Young Kim. “I have been in close contact with California financial institutions and depositors since the Silicon Valley Bank closure. I will continue working to ensure that Americans can trust the safety and resiliency of our banking system. As a member of the Financial Services Committee, I look forward to getting answers and demanding transparency from regulators and the Biden administration on recent bank failures.”
