Another bank collapses in America, regulators seize First Republic Bank

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First Republic Bank: JP Morgan Chase Bank has bought the troubled First Republic Bank and will take over all its deposits and most of its assets. The Federal Deposit Insurance Corp (FDIC) gave this information.

84 branches to open in 8 states with new branding

The FDIC said Monday that California regulators have closed First Republic and appointed it as receiver. JPMorgan Chase will acquire all of First Republic Bank’s deposits and most of its assets. 84 First Republic Bank branches in eight states will reopen on Monday as JPMorgan Chase Bank branches.

FDIC insurance will still continue on customers’ investments

Federal Deposit Insurance Corp. has said in its statement that customers’ investments will still continue to be insured by the FDIC and customers are not required to change their banking relationship to maintain their deposit insurance coverage to the extent applicable. Customers of First Republic Bank should continue to use their existing branch until further notice. As of April 13, 2023, First Republic Bank had total assets of approximately US$229.1 billion and total deposits of US$103.9 billion. In addition to assuming all deposits, JPMorgan Chase Bank has agreed to purchase substantially all of First Republic Bank’s assets.

First Republic Bank was facing bad times

According to sources, more than half a dozen US banks were bidding for the acquisition of First Republic Bank, in which JP Morgan Chase & Co. has got the majority share of the bank. San Francisco-based First Republic was facing bad times since the beginning of March and it was believed that the bank could not survive as an independent institution for much longer. Prior to this, Silicon Valley Bank has also sunk and that too used to finance technology startups.

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