The fate of First Republic Bank is in question, as pressure mounts on the embattled lender after it revealed a massive fall in deposits during the first quarter. As Wall Street debates the cause of First Republic’s (FRC) troubles, one analyst blames the nation’s top financial regulators. Fed Chair Jerome Powell and Treasury Secretary Janet Yellen were “advocates of the strategy called ‘go big at the Fed’,” Chris Whalen, Whalen Global Advisors Chairman tells Yahoo Finance.
“After 2018…we had a big problem in the money markets, so I think Chairman Powell…panicked in Washington, and they decided to provide more reserves.”
Key Video Moments
00:00:05: Powell and Yellen's strategy
00:01:10: Huge market risk
00:01:35: Unrealized losses on balance sheets
