JP Morgan to acquire First Republic Bank
New York, May 1
Regulators seized troubled First Republic Bank early on Monday and sold all of its deposits and most of its assets to JPMorgan Chase Bank in a bid to head off further banking turmoil in the US.
San Francisco-based First Republic is the third mid-sized bank to fail in two months. It is the second-biggest bank failure in the US history, behind only Washington Mutual, which collapsed at the height of the 2008 financial crisis and was also taken over by JPMorgan.
First Republic has struggled since the March collapses of Silicon Valley Bank and Signature Bank and investors and depositors had grown increasingly worried it might not survive because of its high amount of uninsured deposits and exposure to low interest rate loans.
The Federal Deposit Insurance Corporation said early on Monday that First Republic Bank’s 84 branches in eight states will reopen as branches of JPMorgan Chase Bank and depositors will have full access to all of their deposits. — AP
Second-biggest bank failure
- First Republic is the third mid-sized bank to fail in two months
- It is the second-biggest bank failure in the US history, behind only Washington Mutual, which collapsed in 2008
