[dcolkitt]

The problem is that First Republic has $24 billion of off-balance sheet fair value losses, but only $4 billion of that is in securities eligible for the BTFP. $20 billion of losses is in its internal loans book. Even assuming the entire securities hole was patched, the loans losses alone makes First Republic insolvent.

[HPMOR]

Precisely. First Republic is an extremely weak financial position. Given the aggressive nature of the FDIC, in seizing Signature, I would be very surprised if they aren't forced to take action here. The stock should be worth zero, and bankruptcy declared soon.

[adastra22]

FDIC did not seize Signature.