- First Republic would have been “assassinated weeks ago” had it been a crypto bank
- Large banks have provided First Republic with over $30 billion so far
- Janet Yellen is pushing for a “private bailout,” doesn’t want to use government funds
Cameron Winklevoss, CEO and cofounder of New York-based cryptocurrency exchange Gemini, claimed US regulators were enforcing double standards in coping with the crisis of First Republic Bank.
He has said that First Republic would have been “assassinated weeks ago” had it been a crypto bank, CoinTelegraph reported.
Crisis was a long time in coming
First Republic Bank started having structural issues with its balance sheet back when regulators were shutting down Silicon Valley and Silvergate Bank. The Gemini cofounder’s claims are in alignment with a number of letters written by Republican members of the Financial Services Committee of the US House of Representatives.
They were penned in an effort to obtain additional details surrounding coordinated attacks against crypto firms operating in the US. Gemini has opened a platform outside the US because of the hostile regulatory environment in the country.
Government won’t take FRB into receivership
CNBC reported on April 26 that First Republic consultants were trying to convince US banking institutions to give their client more financial assistance. The government doesn’t want to take it into receivership, like it took Silvergate and Silicon Valley. The latter was eventually acquired by First Citizens Bank.
Large banks have provided First Republic with over $30 billion so far. According to First Republic consultants, the bank will keep working. If the government were to take control, they would close it.
Fox News correspondent Charles Gasparino tweeted that US Treasury Secretary Janet Yellen was pushing for a “private bailout” because she didn’t want to use government funds to save FRB.
FRB deposits down $100B+ in a year
On April 23, the bank announced that the total value of its deposits had dropped by more than $100 billion in a year. They are looking for options to improve their financial standing as soon as possible.
The issues with First Republic Bank seem to have done Bitcoin and other cryptocurrencies a favor, as users become more and more distrustful of traditional banks. At the time of writing, Bitcoin was trading at over $29,000 and had gained 2.41% in 24 hours.
Contributors
