The Retirement Rise 5.8.2023
Discover more from Retire on Purpose
The Retirement Rise 5.8.2023
More bank failures, but...shrug, and Buffett on how to live a life of purpose
This Week’s Good Financial News
Last week saw another bank failure, the largest one since 2008, and yet.. (shrug)…no one seemed to care.
From Reuters:
Regulators seized First Republic Bank and sold its assets to JPMorgan Chase & Co on Monday, in a deal to resolve the largest U.S. bank failure since the 2008 financial crisis and draw a line under a lingering banking turmoil.
First Republic was among regional U.S. lenders most battered by a crisis in confidence in the banking sector in March, when depositors fled en masse from smaller banks to giants like JPMorgan as they panicked over the collapse of two other mid-sized U.S. banks.
But, Morgan! That’s not good news!
Yes and no.
Another bank failure is undoubtedly unwelcome news, especially for employees and stockholders of First Republic.
But it’s full of silver linings.
The financial system is not falling apart, and First Republic quickly transitioned to a strong and stable JPMorgan. Per current policy, no depositors were harmed by the bank's failure.
More from the article:
Jane Fraser, CEO of rival Citigroup, hailed the deal as resolving the last major source of uncertainty for the sector after a period of turmoil.
"Let’s not tarnish all the regional and small banks as having an enormous problem,” Fraser told a conference.
"This is not the world financial crisis, this is not the savings and loan crisis. There will be stress, but let’s be targeted where it is."
And that’s good news.
A Thought on Retire on Purpose
Warren Buffett and his business partner, Charlie Munger, are 92 and 99, respectively.
At the latest annual shareholder’s meeting in Omaha this past weekend, Buffet espoused how to live a purposeful life
From today's WSJ:
The question was a philosophical one: How should you avoid major mistakes in business and life?
Warren Buffett, the 92-year-old chairman and chief executive of Berkshire Hathaway, paused briefly.
“You should write your obituary and then try to figure out how to live up to it,” Mr. Buffett said. “It’s not that complicated.”
So, what would you write?
What’s the most minor step you can take to live up to that ideal?
Could you start today?