U.S. regulator seizes First Republic Bank, to sell assets to JP Morgan

The California Department of Financial Protection and Innovation (DFPI) said on Monday it had closed First Republic Bank (NYSE:FRC) and agreed a deal to sell its assets to JPMorgan Chase & Co (NYSE:JPM) and National Association, in what is the third major U.S. bank to fail in two months.

JPMorgan bank was one of several interested buyers including PNC Financial Services Group (NYSE:PNC), and Citizens Financial (NYSE:CFG) Group Inc, which submitted final bids on Sunday in an auction being run by U.S. regulators, sources familiar with the matter said over the weekend.

A deal for First Republic, which had total assets of $229.1 billion as of April 13, comes less than two months after Silicon Valley Bank and Signature Bank (OTC:SBNY) failed amid a deposit flight from U.S. lenders, forcing the Federal Reserve to step in with emergency measures to stabilize markets. Those failures came after crypto-focused Silvergate voluntarily liquidated.

Leave a Reply

Your email address will not be published. Required fields are marked *