Wall Street near flat after First Republic news
STORY: U.S. stocks shook off the latest bank collapse and finished little changed Monday.
The weekend auction of First Republic Bank ended with JP Morgan Chase agreeing to pay the FDIC nearly $11 billion dollars to take control of most of the regional bank’s assets.
It was the third U.S. bank failure in two months and the largest since Washington Mutual in the 2008 financial crisis.
The Wealth Alliance President and Managing Director Eric Diton credits the FDIC with helping to calm markets.
"I think market participants are are wondering you know how deep does this bank crisis go and and how how do we resolve it? And I think what the FDIC, the message, the FDIC has sent clear as day today is that all deposits are ultimately insured. They are. They have now stepped up three times, right, Silicon Valley, Signature and now First Republic Bank. And as scared as uninsured depositors have been, no uninsured depositor has lost a single dollar."
The Dow fell one-tenth-of-one percent, the S&P 500 finished near break-even, and the Nasdaq also fell one tenth of one percent.
The KBW regional bank index fell nearly three percent while JP Morgan rose 2-percent.
Wednesday the Federal Reserve releases its latest decision on interest rates with a quarter point increase widely expected.
Other movers Monday included Norwegian Cruise Line which surged nearly 9-percent after posting a quarterly profit that topped expectations and raising its annual earnings outlook.