Clipped from: https://www.business-standard.com/world-news/jpmorgan-to-acquire-first-republic-bank-after-seizure-by-regulator-123050100439_1.html
First Republic Bank is the third major US bank to fail in two months after Silicon Valley Bank and Signature Bank
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JPMorgan Chase and Company will buy First Republic Bank after the crisis-stricken lender was taken over by regulators. According to a statement by the California Department of Financial Protection and Innovation, JP Morgan will take possession of all deposits and all assets of the bank.
“The FDIC has accepted a bid from JPMorgan Chase Bank, National Association, Columbus, Ohio, to assume all deposits, including all uninsured deposits, and substantially all assets of First Republic Bank,” the statement said.
First Republic Bank is the third major US bank to fail in two months after Silicon Valley Bank and Signature Bank. Those failures came after crypto-focused Silvergate voluntarily liquidated.
JPMorgan Bank was one of several interested buyers including PNC Financial Services Group, and Citizens Financial Group Inc, which submitted final bids on Sunday in an auction being run by US regulators. 11 banks had deposited $30 billion into First Republic Bank to help it have time for finding solutions.
These included Bank of America, Wells Fargo, Goldman Sachs, and Morgan Stanley.
The crisis at the US bank followed the withdrawal of deposits by wealthy clients. Swift rate hikes spelt trouble for some businesses to pay back loans, triggering risks of losses for lenders who were already reeling under recession fears.
A deal for First Republic, which had total assets of $229.1 billion as of April 13, forced the Federal Reserve to step in with emergency measures to stabilize markets.
First Republic Bank’s 84 branches in eight states will reopen on Monday as branches of JPMorgan Chase Bank.
On Friday, the bank’s stock closed 43 per cent lower and hit a record low of $2.99 apiece.