Part of the lesson here is that all of the Fed programs in the world can't fix structural impairments.

They can only bridge liquidity during bank runs.

The underlying assumption behind discount window and other liquidity provisions is that deposits eventually return.

But if deposits don't return, the logic fails.

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 Monday,

May 1st, and today we are talking about the last day of First Republic.

Before we get into that, a quick note. If you are enjoying the breakdown, please go subscribe to it,

give it a rating, give it a review, or if you want to dive deeper into the conversation,

come join us on the Breakers Discord. You can find a link in the show notes or go to bit.Ly slash breakdown pod.

And I do want to thank you guys. A number of you have left great reviews this week. Believe it or not,

people actually read reviews and make decisions about what they're going to listen to next on the

basis of them. So I really appreciate you guys taking the time to do that for me.

But to today's show, on Friday, we discussed how

First Republic Bank was a zombie. Well, friends, the undead have been put down. So heading into the

weekend, chatter was plentiful, but solid information was sparse regarding the resolution of

First Republic Bank. First Republic has been in

the headlines for months. Their stock has lost 90% of its value this year, with a huge amount of

that drop happening in the week following the shutdown of Silicon Valley Bank. Obviously,

after SVB, investors looked everywhere for where they thought the next banking domino might come from,

and specifically they were looking for these mark-to-market losses on long-term asset portfolios,

right? They were looking to find other banks that might have the same sort of duration mismatch,

...