Mohamed El-Erian said JPMorgan's takeover of First Republic could lead to "potential collateral damage". It's another case of US government institutions settling for a "second best" solution, he wrote in a Bloomberg op-ed. AdvertisementTop economist Mohamed El-Erian warned of further "potential collateral damages" from the failure of First Republic Bank and its subsequent takeover by JPMorgan. Yet the potential collateral damage and the unintended consequences are far from immaterial," El-Erian wrote in an op-ed for Bloomberg on Monday. "With that comes the ever-present risk of collateral damage and unintended consequences given that first best policy responses are no longer available," he wrote in the op-ed.

Source: Economic Times May 02, 2023 18:09 UTC