JP Morgan Acquires First Republic Bank
All attempts to resurrect the ailing platform failed, and First Republic became yet another American bank to fail this year. The First Republic Bank has now been taken over by the California Department of Financial Protection and Innovation (DFPI).
The Californian financial regulator appointed the Federal Deposit Insurance Corporation (FDIC) as receiver, and JPMorgan’s bid for the bank’s assets was rejected.
In a press release, the financial services firm confirmed the acquisition of all of First Republic’s deposits. These include approximately $173 billion in loans and $30 billion in securities, as well as the assumption of nearly $92 billion in deposits, $30 billion of which are large bank deposits. The latter will be repaid or eliminated during consolidation.
As part of the deal, FDIC revealed that 84 offices of the First Republic in eight states will reopen as branches of JPMorgan Chase Bank, National Association.
All depositors of the lender will become depositors of JPMorgan Chase Bank, National Association, and will have full access to all their deposits.
The development comes a month after Big Banks’ – a consortium of 11 major US banks – injected $30 billion to stabilize First Republic.
(With inputs from Shikha Singh)
You need to login in order to Like
