Topline
JPMorgan Chase agreed to acquire First Republic after the bank was seized by financial regulators early on Monday, a deal that came after weekend-long negotiations led by federal agencies, who were attempting to prevent a third major bank collapse this year.
A pedestrian walks past a First Republic Bank location in San Francisco, Wednesday.
Key Facts
As part of the deal, JPMorgan Chase will assume all of First Republic’s deposits and assets, the Federal Deposit Insurance Corporation (FDIC) said in a statement.
First Republic was closed down by California regulators on Monday with the FDIC taking over as receiver before it was sold to JPMorgan Chase.
The statement adds that all depositors of First Republic will become depositors of JPMorgan Chase Bank and retain full access to all their money.
As of April 13, First Republic held total deposits of $103.9 billion and $229.1 billion in total assets.
The Federal Deposit Insurance Corporation (FDIC) had invited bids from several banks with JPMorgan Chase, PNC Financial Services Group and Citizens Financial Group submitting formal offers, according to Bloomberg.
This is a developing story.
Source: https://www.forbes.com/sites/siladityaray/2023/05/01/jpmorgan-chase-agrees-to-acquire-first-republic-banks-deposits-after-fdic-intervenes/