Original Air Date: May 02, 2023

On Monday, another multi-billion dollar banking institution collapsed — First Republic Bank. Wealthy investors had been pulling out billions of dollars in deposits over the past few weeks, in a 21st-century digital run on the bank. Federal regulators seized its assets, covered $13 billion in losses, and sold it off to JPMorgan Chase. This is now the second-largest bank failure in American history, and the third significant bank failure of the past two months after Silicon Valley Bank and Signature Bank.

We discuss how this happened and what it means for the U.S. economy with Aaron Klein, Miriam K. Carliner Chair and senior fellow in Economic Studies at the Brookings Institution.