Welcome to the DC Today, your daily market synopsis of the Dividing Cafe, brought to you every Monday through Thursday to bring you up-to-date information and perspective on financial markets.

Well, hello and welcome to a special edition of the DC Today. It's special because it's the Monday edition.

It's special because I'm recording from Minneapolis, Minnesota,

where I'll be in our Minnesota office the next couple of days for client meetings

and a client dinner event and all those fun things.

And because it was an eventful weekend in getting to the end of this banking system drama.

So a special D.C. today for a few reasons.

I'll go kind of quickly.

First of all, just in terms of the market today, we did close down 46 points in the Dow.

The futures were dead flat from when they opened last night, all through the night,

waiting for this announcement to come as to what the fate of First Republic Bank was going to be with the FDIC.

And there were bids being placed by other banks to kind of come take over First Republic all weekend,

and it was more or less known that the FDIC would be putting the bank into receivership.

And the announcement came just as I got up at 3 o'clock in the morning that they were indeed putting it in receivership,

the FDIC, and concurrently selling the banks' assets and ongoing concerns to J.P. Morgan.

So essentially, all depositors woke up this morning with the protection of J.P. Morgan, all deposits backed

there. 84 branches, First Republic Bank that are in eight different states in total, became J.P. Morgan.

And the loans are now owned by them. The deposits are backed by them.

And certainly there are losses that will be incurred, but far, far less than if it had gone to

uninsured depositors. And the FDIC will share in those losses with J.P. Morgan.

So that sort of put an end to that systemic spread of that issue

there now. There's still other banks out there getting their affairs in order, but this was a pretty

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