Former US Secretary of State Henry Kissinger Turns 100

Former US Secretary of State and National Security Advisor Henry Kissinger celebrated his 100th birthday Saturday. Kissinger, who served in the Nixon and Ford administrations, is most noted for negotiating a ceasefire in the Vietnam War and engineering the US opening of relations with communist China. After his service, he became a widely sought-after voice on foreign affairs.

Kissinger’s legacy has also been marked with controversy, including his role in the US bombing of Cambodia, support for the Argentinian military junta during the ‘Dirty War’, and support for Augusto Pinochet’s 1973 coup in Chile.

Regulators Reportedly to Take Control of First Republic

First Republic Bank, the large regional bank known for its customer service and high net worth clientele, is reportedly set to be taken over by federal regulators and brought into receivership in the near future. The rumored move comes after over $100 billion in deposits have flowed out of the bank, spurred by depositors unsure about the bank’s stability.

First Republic has faced similar issues as the recently collapsed Silicon Valley Bank, whose unrealized losses on long-term bond holdings combined with deposit outflows led to its collapse. First Republic’s financial instability has led to the collapse of its stock price, which has fallen in three months from $141.01 to $3.51 at Friday’s close. In the case of First Republic’s failure, shareholders would be the last to receive any proceeds from sold assets.

Both JP Morgan Chase and PNC Bank are reportedly interested in buying First Republic. Both banks were part of an earlier consortium of large banks who deposited $30 billion to try to shore up the bank’s finances. 

 

House Passes Debt Ceiling Bill

The House passed the Republican debt ceiling package Wednesday on a near party line vote, with four GOP defections and all Democrats voting against. The bill would raise the debt ceiling by $1.5 billion while reducing discretionary spending by 9%.

President Biden and Senate Democrats have said the bill is dead on arrival. House Speaker Kevin McCarthy hopes the bill will bring Biden and Senate leadership to start negotiations. Biden ally Sen. Chris Coons (D-DE) has called Republican attempts to use the debt ceiling limit to force spending cuts as ‘hostage negotiations’ and has called for such discussions to be part of regular appropriations talks.