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US regulator seizes First Republic Bank, sells to JPMorgan
Deutsche Welle
01 May 2023, 15:53
The California Department of Financial Protection and Innovation said that regulators had closed First Republic Bank — the third major US bank to fail in two months.
The California Department of Financial Protection and Innovation (DFPI) said on Monday it had closed First Republic Bank and agreed a deal to sell its assets to JPMorgan Chase & Co and National Association.
DFPI appointed the Federal Deposit Insurance Corporation (FDIC) as receiver of First Republic and said it accepted a bid from JPMorgan Chase Bank, National Association, Columbus, Ohio, to assume all deposits.
First Republic Bank is the third major US bank to fail in two months.
JPMorgan Chase Bank will take over assets
Meanwhile, the Federal Deposit Insurance Corp. said that JPMorgan Chase Bank will take over all deposits and "substantially all of the assets of First Republic Bank."
First Republic Bank's 84 branches in eight states will reopen Monday as branches of JPMorgan Chase Bank. Regulators had been working to find a way forward before US stock markets opened Monday.
San Francisco-based First Republic has struggled since the collapses of Silicon Valley Bank and Signature Bank in early March. They added to worries that the bank may not survive as an independent entity for much longer.
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EU Agency Finds Banned Chemicals in Some 6% of Cosmetics
A pilot enforcement project found that around 6% of inspected cosmetic products contained hazardous substances banned under European regulations, the European Chemicals Agency said in a statement on Wednesday.
The ECHA said that national enforcement agencies in the 13 European Economic Area (EEA) member states — including Germany — checked almost 4,500 cosmetic products, and found banned substances in 285 of them.
The investigators were looking for a series of chemicals banned or restricted under a pair of EU regulations, the POPs Regulation banning persistent organic pollutants, and the REACH Regulation on the registration, evaluation, authorization, and restriction of chemicals.
Offending chemicals found 'mainly looking at the ingredients list'
The ECHA said that its pilot project had for the most part used a very simple methodology for tests carried out between November 2023 and April 2024.
"The inspections were mainly done by checking the ingredients list — measures that can be easily used also by consumers," it said.
"Consumers should be aware that the restricted substances were found in different types of cosmetic products, from various sellers and at all price ranges," it said.
Enforcement agencies had taken some first steps to remove the non-compliant products from the market, the ECHA said.
"In most cases, the first step was issuing a written advice guide to suppliers on how to comply with the law. At the time of writing the report, investigations were still ongoing in about half the cases," the ECHA said.
Pencil eyeliners and lipliners, conditioners and hair masks among the items
The Helsinki-based organization was primarily seeking indications of the presence of perfluorooctanoic acid (PFOA), long-chain perfluorocarboxylic acids (PFCAs) and related substances, and cyclic siloxanes D4 and D5.
It said it often found perfluorononyl dimethicone, which degrades into PFOA and PFCAs, in pencil and crayon eyeliners and lipliners — and that D4 and D5 were often present in conditioners and hair masks.
"PFOA and siloxanes, D4 and D5, break down slowly in the environment and build up in humans and other species. PFOA is not only persistent in the environment but also toxic to reproduction and suspected of causing cancer. D4 is also suspected of damaging fertility," the ECHA said.
Faria Yasmin Named Chief Business Officer of ACI Foods
ACI Foods & Commodity Brands has promoted Ms. Faria Yasmin to Chief Business Officer. She will oversee three companies—ACI Foods Limited, ACI Pure Flour Limited, and ACI Edible Oils Limited—and six business divisions: Flour, Lentil, Rice, Foods, Edible Oils, and Foods Export.
With a distinguished 24-year career, including nine years as Business Director at ACI, Faria has been instrumental in driving the growth of ACI’s food and commodity segments.
Ms. Faria’s extensive experience spans leadership roles at Nestlé Bangladesh, Marico Bangladesh, Bangladesh Edible Oil Limited, and Reckitt Benckiser Bangladesh & Sri Lanka.
A graduate of Dhaka University's Institute of Business Administration with a BBA and MBA in Marketing, she is known for her strategic vision and commitment to excellence.
Dhaka's Decision on Garment Exports Leaves Delhi Concerned
Bangladesh has halted the export of garments through India’s air and sea ports. Instead, Dhaka is now routing these products through the Maldives to various destinations worldwide, resulting in significant revenue losses for Delhi.
Indian media outlet LiveMint reported this on Saturday, November 2, citing relevant Indian officials.
Deepak Tiwari, Director General of MSC Agency (India), one of India’s largest cargo carriers, informed the outlet that Bangladesh is no longer using Indian airports for garment exports. Consequently, the revenue India previously earned from these shipments is now lost.
Additionally, officials at India’s seaports revealed that Bangladeshi garment products are first being sent to the Maldives before being airlifted to destinations worldwide. These products include apparel from global brands like H&M and Zara.
Officials noted that Bangladesh, the world's second-largest apparel exporter, previously shipped billions of dollars worth of goods globally via India, generating substantial revenue for India. By bypassing India, Bangladesh's new export route may weaken commercial ties between Dhaka and Delhi, potentially jeopardizing collaborative opportunities in logistics and infrastructure projects.
However, an Indian government official expressed confidence that a mutually beneficial solution will be found to safeguard India’s interests.
Another official pointed out that a significant portion of the garments Bangladesh exports are produced in Indian-owned factories or infrastructure within Bangladesh, which Delhi is also closely monitoring.
Industry expert Arun Kumar suggested that Bangladesh's decision may stem from frustration over a lack of control over their supply chain and delays in shipments through Indian ports.
He added that this new route provides Bangladesh with strategic advantages and improved reliability—crucial for the strict deadlines of the international apparel market. By reducing dependence on Indian ports, Bangladesh is gaining more control over its supply chain.
Arun Kumar also emphasized that garment products are perishable in nature; if shipments don’t arrive on time, orders are canceled.
A representative from India’s Apparel Export Promotion Council stated that India will not be significantly affected by Bangladesh’s decision, as Indian ports are already quite busy. In fact, they had previously urged the Indian government to restrict the export of Bangladeshi garments via Indian ports.
Another official clarified that this halt on garment exports through India has no connection with the political situation involving Sheikh Hasina’s government.
In the 2023 fiscal year, Bangladesh exported garments worth $46.49 billion. In the 2024 fiscal year, garment exports dropped by 4.34%, totaling $44.47 billion. In an effort to avoid delays and increase exports, Dhaka began routing shipments via the Maldives in March 2024.
Adani Group: / No Ultimatum Given to Bangladesh for Outstanding Payments
Adani Power, a subsidiary of the Adani Group, has clarified that no ultimatum was issued to Bangladesh for settling outstanding payments.
In a statement released through a PR firm, Adani Power refuted claims that it demanded a full payment of $800–$850 million within seven days. Instead, Adani confirmed it is working cooperatively with Bangladesh’s Power Development Board (PDB) to resolve the matter.
Bangladesh’s UNB news agency reported this information on Sunday, November 3.
Previously, The Times of India had claimed that Adani Group had set a deadline of November 7 for Bangladesh to settle $850 million in dues, equivalent to around 100 billion BDT.
Following these reports, Bangladesh’s Chief Advisor’s Press Wing assured that the outstanding amount owed to Adani Group would be paid soon. Shafiqul Alam, the Chief Advisor’s Press Secretary, confirmed this during a press conference on November 3 at the Foreign Service Academy on Hare Road, Dhaka.
Shafiqul Alam stated, "It is true that Adani Group is owed payments for electricity imports, and we have accelerated the process. The significant outstanding amount is primarily due to the previous authoritarian regime, the Awami League, which left behind substantial dues. This accumulation has led to the current situation."
He further mentioned that a payment of $97 million was made to Adani last month, which is double the amount paid in August or the previous month. Bangladesh is now making maximum efforts to speed up payments as foreign reserves have started to increase, allowing international payments without drawing from reserves. The remaining balance of $700 million is also expected to be cleared soon.
Earlier, Adani Group had set an initial payment deadline of October 31 for the Bangladesh Power Development Board (PDB). Additionally, Adani requested a Letter of Credit (LC) for $170 million as a guarantee of payment.
Though PDB issued an LC through the Agricultural Bank, it did not meet the terms of the electricity purchase agreement, citing the dollar crisis as a primary reason. Consequently, on October 31, Adani Group reduced its electricity supply from its Jharkhand power plant to Bangladesh by half.
Bangladesh Eases Import Terms for Essential Goods Ahead of Ramadan
To facilitate the import of essential goods for the upcoming Ramadan, the central bank has taken steps to provide special benefits. From now on, importers can negotiate with banks to lower the margin for opening letters of credit (LC) to a minimum level for 11 types of goods.
On Wednesday (November 6), Bangladesh Bank issued a circular regarding this.
The circular states that the demand for certain essential goods typically rises during Ramadan. With this in mind, the central bank has implemented this measure to facilitate imports, helping keep prices at a tolerable level.
It was also mentioned that importers will be able to avail of this benefit until March 31 of next year.
The directive further states that, considering the increase in demand for essential items during Ramadan, the import of items like rice, wheat, onions, lentils, edible oil, sugar, eggs, chickpeas, peas, spices, and dates should be facilitated. To keep prices manageable and ensure adequate supply, banks are instructed to maintain the LC cash margin at a minimum level based on the bank-client relationship.
Previously, a 100% cash margin or deposit was required for product imports, but now this margin will be determined based on the relationship between the client and the bank.
Industry stakeholders believe that this relaxation of LC margins will encourage importers, requiring them to tie up less cash and reducing import costs. As a result, it may help lower the prices of these goods in the market.
