The US federal regulatory authority (DFPI) announced today that First Republic Bank (FRB) has been placed under its control, while an agreement has been reached to sell the bank to JPMorgan Chase & Co.
This is the third major American bank to collapse in two months.
JPMorgan Chase & Co. will acquire most of FRB's assets and all of its deposits, including uninsured deposits, according to a statement from the DFPI.
“Our government invited us and others to speed up (the process), and we did,” said James Dimon, chairman and CEO of JPMorgan Chase. “Our financial strength, capabilities, and business model allowed us to put together a proposal to make the transition in a way that would reduce costs for the Deposit Insurance Fund (DIF).
The bank's rescue comes less than two months after the collapse of Silicon Valley Bank and Signature Bank, following a decline in their deposits, prompting the US Federal Reserve (Fed) to intervene with emergency measures to stabilize the markets.
This article really hit home for me, thanks.