US regulator seizes First Republic Bank, sells assets to JP Morgan. First Republic Bank, the third major U.S. bank to fail in two months, was seized and sold to JPMorgan Chase & Co. on Monday.
The authorities said the Wall Street giant would absorb most of First Republic’s assets and all deposits, including uninsured ones.
Over the weekend, sources said JPMorgan, PNC Financial Services Group, and Citizens Financial Group Inc. submitted final bids on Sunday in a U.S. regulator-run auction.
The California Department of Financial Protection and Innovation took over the First Republic early Monday and appointed the FDIC as its receiver.
The FDIC predicted $13 billion for the Deposit Insurance Fund. FDIC receivership termination will decide the final cost.
Silicon Valley Bank and Signature Bank collapsed two months earlier, prompting the Federal Reserve to intervene to calm markets.
After crypto-focused Silvergate voluntarily liquidated, those failures occurred.
The FDIC stated that First Republic had $229.1 billion in assets and $103.9 billion in deposits on April 13.
“Our government invited us and others to step up, and we did,” said JPMorgan Chase Chairman and CEO Jamie Dimon. “Our financial strength, capabilities, and business model allowed us to develop a bid to execute the transaction to minimize costs to the Deposit Insurance Fund.”
Silicon Valley Bank and Signature Bank collapsed two months earlier, prompting the Federal Reserve to intervene to calm markets.
After crypto-focused Silvergate voluntarily liquidated, those failures occurred.
The announcement said JPMorgan Chase Bank would reopen 84 offices in eight states from the bankrupt bank on Monday.
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