This transcript was prepared by a transcription service. This version may not be in its final form and may be updated.Charles Forelle: I love talking about banks on this podcast. I mean, I love talking about banks, period. But I really love talking about banks on this podcast.Charles Forelle: It's just fantastic.
Charles Forelle: J.P. Morgan has $3.7 trillion, that's trillion with a T in assets. It does all kinds of stuff. It has a huge trading business, so it trades securities. It has a gigantic lending business, so it lends money to people and to companies. It has a massive, massive retail franchise. Obviously, the Chase franchise is everywhere. It is really the dominant bank in the United States.
Charles Forelle: It was very much about the financial system and less about First Republic. It was very much that the purpose of doing this and the purpose of putting money in here was to demonstrate that the financial system was in a broader sense, healthy and strong, and that the big banks would come to the aid of their smaller peers and it was meant to sort of show solidarity and solidity in the broader banking system.Charles Forelle: In a way.
Kate Linebaugh: But that all changed last week. First Republic released its earnings and its financial state was bad, like really bad. Kate Linebaugh: After the break, what that feast looked like. When it was clear that First Republic was failing, the government needed to find a buyer and fast. So it opened up bidding for First Republic, and four banks submitted bids.
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