Transcript for Another lifeline may come for First Republic Bank as JPMorgan Chase steps up to help
>> WELCOME BACK.
CONCERNS ARE GROWING ABOUT
ANOTHER US BANK FAILING.
FIRST REPUBLIC BANK COULD
BE RECEIVING AN ADDITIONAL
LIFELINE FROM JPMORGAN CHASE.
ABC NEWS BUSINESS REPORT
ALEXIS CHRISTOFOROUS HAS
MORE ON THAT AND YOUR OTHER
BUSINESS HEADLINES TODAY.
>> ALEXIS , WHAT ARE YOU
WATCHING?
WELL, FINALLY, A LITTLE BIT OF
CALM RETURNING TO THE BANKING
INDUSTRY TODAY.
WALL STREET BUILDING
ON YESTERDAY'S BIG RALLY AFTER
TREASURY SECRETARY JANET YELLEN
REASSURED AMERICANS THAT
OUR BANKING SYSTEM IS STRONG.
YELLEN EXPECTED TO TELL
A BANKING CONFERENCE TODAY THAT
THE FEDERAL GOVERNMENT COULD
STEP IN TO PROTECT DEPOSITORS
AT ADDITIONAL BANKS IF NEEDED.
NOW, OF COURSE, THIS NEWS COMES
JUST A DAY AFTER THE SWISS
BANKING GIANT UBS CAME TO THE
RESCUE AND AGREED TO TAKE OVER
ITS EMBATTLED, SMALLER RIVAL,
CREDIT SUISSE, FOR
THREE BILLION DOLLARS.
AND THOSE WILD MOVES WE'VE BEEN
SEEING AND FIRST REPUBLIC STOCK
ARE CONTINUING SHARES OF
THE REGIONAL BANK BOUNCING
BACK TODAY AFTER FALLING
MORE THAN 47% YESTERDAY.
THE HEAD OF JPMORGAN CHASE NOW
REPORTEDLY ADVISING FIRST
PUBLIC ON SOME STRATEGIC
ALTERNATIVES, INCLUDING
A POSSIBLE SALE.
FIRST REPUBLIC HAS SUFFERED
A TREMENDOUS NUMBER OF
WITHDRAWALS FROM UNINSURED
DEPOSITORS AFTER THE COLLAPSE
OF SILICON VALLEY BANK.
AND NOW INVESTORS ARE TURNING
THEIR ATTENTION TO THE FEDERAL
RESERVE, WHICH IS SET
TO ANNOUNCE ITS INTEREST RATE
DECISION TOMORROW.
THE FED IS FACING ONE OF
THE TOUGHEST CALLS IN YEARS.
MOST ECONOMISTS EXPECT
A SMALLER QUARTER POINT RATE
HIKE TOMORROW AS THE FED
CONTINUES ITS FIGHT AGAINST
INFLATION.
BUT DIANE , SOME BELIEVE
THE FED COULD ACTUALLY HOLD OFF
ON RAISING INTEREST RATES THIS
TIME AROUND TO SORT OF LET
THINGS SETTLE IN THE BANKING
INDUSTRY.
WE'RE ALSO NOW HEARING THE FDIC
MIGHT EXPAND ITS COVERAGE
TO INSURE AMERICANS BEYOND
THAT.
TWO HUNDRED AND FIFTY THOUSAND
DOLLAR THRESHOLD.
WHAT ARE YOU HEARING?
I WOULDN'T HOLD MY BREATH, BUT
THERE ARE SOME REGIONAL BANKS
WHO ARE ASKING THAT
THE GOVERNMENT TEMPORARILY LIFT
THAT CURRENT CAP ON DEPOSIT
INSURANCE IF ANOTHER REGIONAL
LENDER WERE TO FAIL.
BUT REPUBLICANS ARE PUSHING
BACK HERE.
THE HOUSE FREEDOM CAUCUS
RELEASING THIS STATEMENT.
ANY UNIVERSAL GUARANTEE ON ALL
BANK DEPOSITS, WHETHER IMPLICIT
OR EXPLICIT, ENSHRINES
A DANGEROUS PRECEDENT THAT
SIMPLY ENCOURAGES FUTURE
IRRESPONSIBLE BEHAVIOR TO BE
PAID FOR BY THOSE NOT INVOLVED
WHO FOLLOWED THE RULES.
SO WE HAVE A VERY DIVIDED
CONGRESS.
I DOUBT THIS WOULD PASS IN
CONGRESS, BUT WE'LL SEE WHAT
JANET YELLEN HAS TO SAY TODAY
ON A LOT OF PEOPLE GOING TO BE
WATCHING THAT SPEECH CLOSELY,
ALEXIS CHRISTOFOROUS.
THANK YOU.
AND IF YOU WANT TO ASK
ALEXIS ANY PERSONAL FINANCE
This transcript has been automatically generated and may not be 100% accurate.