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First Republic Bank was seized by regulators and sold to JPMorgan Chase early Monday morning, making it the third major bank to fail since March.

The FDIC brokered the deal for Chase to take over First Republic following weekend-long negotiations and “a highly competitive bidding process,” according to a Monday statement.

JPMorgan Chase will take control of all First Republic deposits and assets, and all 84 branches of First Republic Bank will reopen as branches of JPMorgan Chase during Monday business hours, the FDIC said.

Bidding for First Republic lasts into the night: A guide to the latest banking crisis

Customers with accounts at First Republic will be able to access their deposits by the beginning of Monday business hours, the FDIC said. The FDIC said that deposits with the bank will continue to be insured.

As of April 13, First Republic Bank had approximately $229.1 billion in assets and $103.9 billion in deposits, the FDIC said.

First Republic Bank had struggled in the wake of the abrupt collapses of Silicon Valley Bank and Signature Bank, which were both taken over by the Federal Deposit Insurance Corporation in March.

“I am pleased we were able to deal with First Republic’s failure without using the FDIC’s emergency powers. It is a grave and unfortunate event when the FDIC uses these emergency powers,” said FDIC Board of Directors member Jonathan McKernan in a statement, adding that “more work remains to be done” to strengthen the banking system and plan for failures.

JPMorgan Chase said in a statement that the move is supporting the U.S. financial system as consumer confidence in banking wavers.

“Our government invited us and others to step up, and we did,” said Jamie Dimon, chairman of CEO of JPMorgan Chase. “Our financial strength, capabilities and business model allowed us to develop a bid to execute the transaction in a way to minimize costs to the Deposit Insurance Fund.”

JPMorgan Chase and the FDIC will together cover the costs of losses on residential and commercial loans issued by First Republic.

The FDIC said the sale of First Republic will likely cost $13 billion from the Deposit Insurance Fund, which is the FDIC fund for protecting deposits at failed banks. The DIF had $128 billion at the end of 2022, but the FDIC was already forced to spend nearly $22.5 billion to handle the collapses of Silicon Valley Bank and Signature Bank in March. Why did First Republic collapse?

First Republic had been teetering for months after the collapses of SVB and Signature set off a banking crisis in March.

The San Francisco-based regional powerhouse did not appear to have the same mismanagement issues as SVB, not did it share Signature Bank’s unique relationship with the volatile cryptocurrency sector.

But First Republic shared other major weakness with SVB, including steep losses on investment holding and holding the vast majority of their deposits above the FDIC’s insurance threshold. Bidding for First Republic lasts into the night: A guide to the latest banking crisis Cohn says First Republic sale ‘will be a much faster process’ than Silicon Valley Bank

First Republic received $30 billion in March from a group of major U.S. banks — including JPMorgan Chase — to help stave off a collapse and restore customer confidence in the bank.

Even so, First Republic’s woes deepened last week after a dire first-quarter earnings report showed the depth of its losses during the outbreak of the crisis. The dire financial numbers spurred a fresh round of panic over the health of the bank, spurring takeover discussions that stretched over the weekend.

Updated at 80 a.m.

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Sports

NASCAR seeks new mediator in antitrust lawsuit

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NASCAR seeks new mediator in antitrust lawsuit

CHARLOTTE, N.C. — NASCAR has asked a federal court for a judicial settlement conference so that an independent judge can mediate the antitrust suit filed by Michael Jordan-owned 23XI Racing and Front Row Motorsports.

The two teams pushed back in their own late Monday night filing that it wants to continue working with mediator Jeffrey Mishkin, the former executive vice president and chief legal officer of the NBA who has been negotiating between the two sides this year.

“Mr. Mishkin has invested a great deal of time learning this case and meeting with the parties,” 23XI and Front Row said in the filing. “Plaintiffs have thus requested that NASCAR continue to engage with them via Mr. Mishkin or to make a settlement offer directly to Plaintiffs’ counsel, but NASCAR has not responded to those requests and instead filed this motion.

“It seems NASCAR is not happy with the diagnosis and wants to seek a second opinion.”

The teams argued Mishkin “has significant expertise in complex, sports-related antitrust disputes and has served as an arbitrator or mediator for the international Court of Arbitration for Sport, the America’s Cup, FIFA, and the NFL, among others.”

The teams also argue that “starting over” with a new mediator is “less likely, not more likely, to lead to resolution.”

The dueling motions come as NASCAR seeks a summary judgement to dismiss the case before the scheduled Dec. 1 start of trial. A hearing on that motion is scheduled for Oct. 21.

At issue is the protection of the charter system that is at the heart of NASCAR’s business model and the focal point of the court fight. The charter system is NASCAR’s version of a franchise model. A charter guarantees owners spots in the field, a base amount of revenue each year, and according to NASCAR, has created more than $1.5 billion in equity value for its teams since 2016.

A year ago, 13 of the 15 teams re-signed when they believed two-plus years of negotiations would not lead to a better deal. 23XI, co-owned by Jordan and three-time Daytona 500 winner Denny Hamlin, and Front Row Motorsports, owned by entrepreneur Bob Jenkins, went to court instead.

For months, the other 13 teams have privately complained that the lawsuit is creating uncertainty over the future of NASCAR. Mishkin has made no progress toward a settlement and NASCAR now wants a federal judge other than U.S. District Judge Kenneth Bell, who is presiding over the case, to hear both sides and advise on a resolution.

Most of the top teams in NASCAR last week submitted declarations calling for a settlement and protection of the charter system, which NASCAR noted in its Monday night filing to the U.S. District Court for the Western District of North Carolina.

“The parties’ readiness to resolve this matter, along with the interests of others in the sport and the Court to see this case resolved, suggest a judicial settlement conference would be a meaningful way to facilitate a settlement,” NASCAR wrote.

Both sides have shown a willingness to talk, but no progress has been made.

Through a judicial settlement conference, NASCAR hopes to bring in a judge who can help direct the talks and offer insight into how a jury might interpret the complex NASCAR antitrust case.

The court must approve NASCAR’s request.

All sides have said they are open to settlement, including Jordan, who also added after an August hearing he was willing to take it to trial if necessary.

“I look forward to going down with the fire. If I have to fight this to the end, for the betterment of the sport, I will,” he said outside federal court. “We’ve always been open to a settlement. Always have been. We’ve never taken that off the table.”

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Technology

Inside Rivian’s design factory and the story behind those distinct headlights

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Inside Rivian's design factory and the story behind those distinct headlights

Rivian made a name for itself when it unveiled one of the first electric pickup trucks, the R1T, in 2018. It followed that up with an SUV built off the same platform, the R1S, and has since built a passionate fan base around a brand that celebrates adventure and the outdoors.

Now it’s preparing for its next chapter with the R2, a smaller spin on the R1S SUV, and the R3, a rally-inspired hatchback.

“A lot of people were surprised on R3” Rivian Chief Design Officer Jeff Hammoud told CNBC. “It’s not something that I think a lot of people would have guessed that Rivian would have done … and that was the key thing we were trying to show, we’re not pigeonholed to one form factor.” 

The new vehicles, which were unveiled in March of last year, are part of Rivian’s strategy to reach a broader market for its electric vehicles, which currently start upwards of $70,000.

The R2, which the company says will start around $45,000, is expected to go into production by the end of this year at the company’s Normal, Illinois, manufacturing facility. 

“While R1 was designed through addition, we had to look at R2 through subtraction,” Hammoud said. “What are the things we can remove or take away, but still keep the ethos of the product and the brand?”

The R2 and R3 are coming on the heels of a tough time for the automaker.

Weak demand, higher costs and the U.S. cancelling the EV credit could spell trouble for Rivian. But that hasn’t stopped the company from breaking ground on a new $5 billion factory in Georgia, where the next generation vehicles will be built.

“We’re first launching R2 at our facility in Illinois, but this is really the site where we’ll scale global production. We’re building this into a 400,000 unit plant,” Rivian CEO RJ Scaringe told CNBC’s Phil LeBeau at the plant’s construction site in September.

CNBC got rare access inside Rivian’s design lab in Irvine, California, to see how the company shapes its distinctive vehicles. We see how the EV maker approaches design for its adventure-driven EV lineup, which includes the backstory on how it conceived its iconic headlights, a choice that provoked mixed reactions when first unveiled.

“They were controversial,” recalls John Voelcker, contributing editor at Car and Driver. “It took a while for people to get over it. I think it was smart in that it’s harder to make your truck distinctive. So a front end that immediately is like no one else is probably a good thing.”

Watch the video to learn about Rivian’s approach to design and its plans to expand its brand of adventure-themed EVs. 

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UK

Woman filmed cutting commemorative yellow ribbons for Israeli hostages

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Woman filmed cutting commemorative yellow ribbons for Israeli hostages

A woman has been filmed cutting yellow ribbons tied to a gate in London, put up in commemoration of Israeli hostages.

When confronted by two bystanders near the gate in Muswell Hill, north London, the woman said: “I’m not committing a crime.

“If I am, then call the police and you let them know that you have an issue with this.”

In the video, a man branded the woman “a disgusting little human being,” to which she replied: “I think condoning genocide is disgusting.”

The bystander asked her: “So we’re condoning genocide?”

The woman then appeared to point at the ribbons and said: “That’s what this is.”

October 7 anniversary latest: Families demand answers

Pic: X/@mirandalevycopy
Image:
Pic: X/@mirandalevycopy

The yellow ribbon has been used as a symbol of the plight of those taken captive since the 1979 US-Iranian hostage crisis, and has become synonymous with the hostages held in Gaza since 7 October 2023.

The ribbons are used as part of the ‘Bring Them Home’ campaign, which was introduced to raise awareness of the hostages’ plight and help amplify calls for the unconditional release of those still held by Hamas.

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Two years on from October 7 attacks

The Metropolitan Police told Sky News: “Officers have stepped up reassurance patrols in the Muswell Hill area, following reports that yellow ribbons were removed from fence poles.”

A spokesperson said the force was made aware of a video circulating online which “appears to show a woman removing the ribbons in Muswell Hill” at 4.25pm on Monday.

“Officers attended the location and are reviewing the footage to determine whether any offences, including hate crime or criminal damage, have been committed. Enquiries remain ongoing,” the spokesperson added.

Officers are asking anyone with information to contact the force.

Read more from Sky News:
Two lives torn apart by October 7
Israel deports Gaza aid flotilla activists

The incident happened just a day before the second anniversary of the October 7 attack, when Hamas killed 1,200 people and took 251 back to Gaza as hostages.

Israel says 48 hostages remain in Gaza, 20 of whom are believed to be alive.

Gaza’s health ministry says Israel’s offensive has killed more than 67,000 people in the region since 7 October 2023. It does not differentiate between civilians and combatants in its figures, but says more than half of those killed are women and children.

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