First Republic Bank's collapse was part-triggered by its offer of attractive 'jumbo mortgages' to wealthy clients whose loans were interest-only for up to a decade.The failed bank sold loans with rock bottom rates to rich clients including Goldman Sachs President John Waldron and music mogul Todd Moscowitz, the former CEO of Warner Bros Records, who both purchased multimillion dollar homes, property records show.These 'jumbo mortgages', a staple of First Republic's business model for decades, were a great deal for buyers - but when the began to aggressively hike interest rates in 2022.
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