Business
After SVB And Signature, First Republic Bank Becomes Third American Bank To Fail Since March
The building housing the headquarter of First Republic Bank in San Francisco (Pic Via Wikipedia)
The California Department of Financial Protection and Innovation (DFPI) on Monday (1 May) announced that regulators have taken possession of troubled First Republic Bank, resulting in the third failure of an American bank since March.
The DFPI appointed the Federal Deposit Insurance Corporation (FDIC) as receiver of First Republic Bank.
Silicon Valley Bank and Signature Bank both were taken over by the FDIC last month following runs on those banks by their customers.
Meanwhile, JPMorgan Chase Bank has announced that it has acquired the substantial majority of assets and assumed the deposits and certain other liabilities of First Republic Bank from the Federal Deposit Insurance Corporation (FDIC).
As part of the purchase, JPMorgan Chase is assuming all deposits – insured and uninsured.
"In carrying out this transaction, JPMorgan Chase is supporting the US financial system through its significant strength and execution capabilities," the bank said in a statement.
The FDIC took control of the embattled First Republic and then immediately announced a sale of many of its assets and deposits.
JPMorgan bank was reportedly one of several interested buyers including PNC Financial Services Group, and Citizens Financial Group Inc, which submitted final bids for First Republic on Sunday in an auction being run by US regulators.
The San-Francisco based First Republic Bank had total assets of approximately $229.1 billion and total deposits of $103.9 billion as of 13 April.
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