It is dynamic, complex. It shows the interworking of these different actors in this power struggle.

You've got First Republic themselves. You've got the big banks who helped capitalize them.

You have other regional banks who are nervous about the example it might set.

You've got the Fed, the FHLB, and the FDIC, all who have slightly different interests,

even though they nominally represent the U.S. government.

You've got Biden and Yellen who are dealing with election issues. And so it's a mess. Welcome back to the breakdown,

with me, NLW. It's a daily podcast on macro, Bitcoin, and the big picture power shifts

remaking our world.

What's going on, guys? It is Friday, April 28th, and today we are talking First Republic Bank and whether it is the next domino in the banking crisis. Before we get into that,

a quick note. The breakdown newsletter is back. Every weekday morning, we are sending out what we're

calling the first five, the five most interesting or important events in crypto, Bitcoin Macro.

You can subscribe to that at Breakdown.Behive, which is B-E-E-H-I-I-V.com. And if you're

enjoying the newsletter, please share it. And if you're enjoying this show,

I would so appreciate it if you leave a rating or review. But with that out of the way,

let's get to today's show. Today is a macro show, because all week, people have been watching

First Republic and asking whether it's the next banking domino. On Monday,

First Republic disclosed more problems than anticipated in its quarterly report. Blockworks Jack Farley

summed it up in a tweet. First Republic bank's deposits fell by 40% in 22 days. If not for the

$30 billion rescue package from big banks, the decline would have been 57%.

First Republic reports that their outflows have stabilized. FRC also expects to reduce

headcount by 20 to 25%. Keep in mind, FRC is the most high profile and dramatic instance

of deposit flight to occur at a bank other than the banks that got taken over by the FDIC.

...