First Republic Bank offers attractive rates in the Bay area and some of their programs offer even lower rates for certain qualifying neighborhoods. Anyone ever wonder what makes this bank so special that they offer lower mortgage rates than any other financial institution in the Bay area. One of their criterion for getting attractive rates is maintaining a certain account balance at all the times. Its not a stretch of imagination that they might be using the balances in something more risky than a Treasury to be able to offer such below average rates. It’s anyone’s guess what happens if there is a Bank run on First Republic. Remember there is no free lunch especially when it comes to financial institutions. I would be nervous having any financial engagements with them. How about you? #investments #bayarea
Noob question. What happens to a mortgage if the bank does get shut down
If your deposits are under the FDIC limit they are 100% safe to do business with. And the limit is by type of account and owner so it's easy for a married couple to have $1mm+ insured at a single bank. Nothing to worry about
Even Madoff was FDIC insured, remember what happened during the settlements..
What happened
They’re FDIC insured so why does it matter? They definitely target wealthy individuals with the minimum account balance + really low rates. It’s pretty f’in smart tbh
Madoff did that too by the way. His client base was palm beach residents..
Their rates suck. And this is coming from a long time customer.
If you're talking about the Eagle Community Loan program, most properties are not eligible. Their lowest rate also requires a 25k reserve in a checking account. Why would there be a bank run?
Bank Run loading.. Thanks to the FAANG couples, my children’s trust is going to be getting bigger. Bought puts on FRC.
Sold FRC puts. Let’s see which of us ages well 😅🍷. What strike & date you bought?
Someone listened to you and shorted this at 50$ this morning 🍿🍿
$50 will seem a great entry when this is at $25.
Good call OP!