JPMorgan Chase & Co on Monday will acquire First Republic Bank after it was seized by financial regulators, reported Bloomberg. The deal comes after weekend-long negotiations led by federal agencies attempting to prevent third major bank collapse.
JPMorgan Chase & Co on Monday will acquire First Republic Bank after it was seized by financial regulators, reported Bloomberg. The deal comes after weekend-long negotiations led by federal agencies attempting to prevent third major bank collapse.
According to a statement by the Federal Deposit Insurance Corporation, JPMorgan Chase will acquire all of the banks deposits and it also added that the depositors of the bank will retain full access to the funds and will now be depositors of JPMorgan Chase.
FDIC invites banks for submitting formal offers
The decision comes after the effort to rescue First Republic Bank fell through and the regional bank was shut down by California regulators on Monday and FDIC took over as receiver. FDIC had invited several banks including PNC Financial Service Group, JPMorgan Chase and Citizens Financial Group for the submission of formal offers.
The regional bank as of April 13 held total deposits of $103.9 billion and $229.1 billion in total assets. This make First Republic’s collapse, the second largest bank failure in U.S. history. As it surpasses the failure of Silicon Valley Bank in March which held assets worth $209 billion at the time of its collapse.
