First Republic Bank Seized, Sold to JPMorgan In Second-Largest U.S. Bank Failure
The First Republic Bank has become the third major bank to go under since March.
"First Republic Bank, San Francisco, California, was closed today by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver."
"To protect depositors, the FDIC is entering into a purchase and assumption agreement with JPMorgan Chase Bank, National Association, Columbus, Ohio, to assume all of the deposits and substantially all of the assets of First Republic Bank."
"As of April 13, 2023, First Republic Bank had approximately $229.1 billion in total assets and $103.9 billion in total deposits."
"In addition to assuming all of the deposits, JPMorgan Chase Bank, National Association, agreed to purchase substantially all of First Republic Bank’s assets."
"The FDIC estimates that the cost to the Deposit Insurance Fund will be about $13 billion. This is an estimate and the final cost will be determined when the FDIC terminates the receivership."
"First Republic failed despite having received a $30 billion lifeline from 11 of the country’s largest banks in March. It will go down in history as the second largest U.S. bank by assets to collapse after Washington Mutual, which failed during the financial crisis of 2008."
"First Republic, which started operations in 1985 with a single San Francisco branch, is known for catering to wealthy clients in coastal states. As of the end of last year, it was the nation’s 14th-largest bank, according to a ranking by the Federal Reserve."