You’ve probably already heard about the latest banking collapse, this time involving First Republic Bank. Before it imploded entirely, JPMorgan was allowed to buy out the bank. But financial analysts warned that First Republic’s stockholders were likely facing “a wipeout.” But it didn’t turn out to be bad news for everyone. In yet another of those amazing “coincidences” that typically happen around Nancy and Paul Pelosi, Florida Democratic Congresswoman Lois Frankel came out of this smelling like a rose. Recent financial disclosure forms show that she sold off all of her First Republic stock several weeks earlier, ahead of the crash that saw the stock lose 75% of its value. What an amazing stroke of luck for her! I’ll give you three guesses as to what stock she purchased to replace it. (Free Beacon)
Florida Democratic representative Lois Frankel is capitalizing on First Republic Bank’s collapse and subsequent buyout by JP Morgan Chase & Co, according to congressional financial disclosures reported on by Newsweek.
Frankel sold her stock in the San Francisco-based bank on March 16, weeks before the value of its shares dropped 75 percent and U.S. regulators seized the failing bank’s assets, Newsweek reported. A few days later, on March 22, Frankel bought stock in JP Morgan Chase & Co, which on Monday bought most of First Republic Bank’s assets. The exact amount of stock Frankel traded is unknown, but according to the filing, the value for each trade was between $1,001 and $15,000, Newsweek reported.
When reached for comment, Frankel said that her account is handled independently by a money manager “who buys and sells stocks at his discretion.” He must be a pretty savvy fellow. He doesn’t by chance have anyone in his Rolodex who happens to serve on the House Committee on Appropriations overseeing the Department of the Treasury for International Financial Institutions, does he?
C’mon, man. He didn’t just dump your stock from First Republic. He turned around and used the money to buy stock in JPMorgan which just happened to be the outfit that bought out that bank. That’s just a little bit too “on the nose,” isn’t it?
On what I’m sure is a completely unrelated note, JPMorgan shouldn’t have been able to purchase First Republic because of a rule barring one bank from holding more than 10% of U.S. deposits. But exceptions can be granted in an emergency, so JPMorgan was granted one… by Congress.
Read Related Also: It's Time to Pay Attention to the Arrest of Miles Guo and the Throngs of Chinese Nationals Who Are Protesting for His Release
JP Morgan was able to acquire First Republic Bank, despite the rule against one bank controlling more than 10% of US deposits
JP Morgan now holds more than $2.4 TRILLION in deposits pic.twitter.com/6sXDEKWEN2
— Genevieve Roch-Decter, CFA (@GRDecter) May 1, 2023
In case anyone has forgotten, one investment firm in New York created a fund called The Insider Portfolio. It mimics all of the trades executed by Nancy and Paul Pelosi. It’s also one of the better-performing portfolios on Wall Street. It’s like these people can’t even be bothered to try to hide it anymore.
There is a bill on the floor of the House right now that would ban members of Congress and their immediate family members from owning or trading stock. They even got AOC to sign on as a sponsor. Do you really believe that the House and Senate leadership will ever let that bill see the light of day? Don’t bet your retirement account on it.
