Vance and War­ren sound alarm over FDIC’s role in sale of First Repub­lic Bank

An unlike­ly bipar­ti­san Sen­ate duo is call­ing for trans­paren­cy from the Fed­er­al Deposit Insur­ance Cor­po­ra­tion after rais­ing con­cerns over its facil­i­ta­tion of the sale of First Repub­lic Bank to JPMor­gan Chase.
The alliance between pop­ulist Sen. J.D. Vance (R‑OH) and pro­gres­sive Sen. Eliz­a­beth War­ren (D‑MA) revolves around two top­ics: Wall Street and excess­es from large busi­ness­es.
The two mem­bers of the Sen­ate Bank­ing Com­mit­tee sent a let­ter to FDIC Chair­man Mar­tin Gru­en­berg ask­ing ques­tions about the corporation’s role in the sale of the failed bank and even alleg­ing that he mis­led Vance regard­ing the spread of bids received for First Repub­lic Bank.
“In pri­vate con­ver­sa­tions with Sen­a­tor Vance, you have indi­cat­ed a bid spread of $20 bil­lion,” the sen­a­tors wrote to the chair­man. “How­ev­er, Sen­a­tor Vance’s office has learned from gov­ern­ment offi­cials and indus­try lead­ers, who have pur­port­ed to be privy to the auc­tion process, that the final spread between JPMorgan’s bid and the next most viable bid was like­ly clos­er to $1 bil­lion. If true, this would be con­cern­ing giv­en that ret­ro­spec­tive reviews of past bank res­o­lu­tion cost esti­mates have been found to be extreme­ly impre­cise – some­times off by bil­lions of dol­lars.”
The sen­a­tors are call­ing for the FDIC to pro­vide more infor­ma­tion about the terms of bids received, the spreads between the com­pet­ing bids, the bids’ impact on the FDI …