First Republic Bank closed its doors for good on Monday. JPMorgan Chase & Co bought First Republic's assets in an express auction, held over the weekend with the aim of securing a buyer before the opening of the New York Stock Exchange.
As part of the agreement signed by the Federal Deposit Insurance Corporation (FDIC), which was managing First Republic and JPMorgan, both entities will share the losses. JPMorgan will take the $103.9 billion in deposits and buy most of the $229.1 billion in assets. The FDIC made the announcement in a press release.
FDIC_ PR-34-2023 5_1_2023 by Santiago Adolfo Ospital
First Republic has been faltering for some time. In the first three months of the year, customers withdrew $102 billion. Once the news got out, shares plunged by 75%. So far this year, shares have fallen more than 90%.
The trouble facing the San Francisco-based bank caused concern, especially after Silicon Valley Bank's failure in March. The Wall Street Journal reported that three of the four biggest bank failures of all time have occurred in the last two months.
