First Republic Bank is one of America’s largest banksImage Credit source: Reuters
The condition of the banking sector in America is very bad. After Signature Valley Bank, now another ‘First Republic Bank’ is going to be sold here. JP Morgan Chase & Co. has agreed to buy it after the bank collapses. However, JP Morgan will still take time to complete this acquisition.
Actually JP Morgan will buy First Republic Bank when the US regulators seize its assets. First Republic Bank is one of the big banks in America and has been facing trouble since March this year.
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JP Morgan will get full weight
California RegulatorDepartment of Financial Protection and Innovation (DFPI) Has said in a statement that JP Morgan will take over the entire burden of First Republic Bank. For example, all bank deposits, uninsured deposits and other assets will all go to JP Morgan.
California’s regulator has Federal Deposit Insurance Corporation (FDIC) has been appointed receiver of First Republic Bank. DFPI’s statement said that the deposits to which FDIC gives insurance cover, will be paid accordingly.
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First Republic Bank is closed
America First Republic Bank is now closed. Regulators tried to save this San Francisco bank on several marches, but they have failed to do so. Initially, other banks were hesitant to invest money in this sinking bank, but some were showing interest in buying it when it was auctioned.
In the month of March, a group of 11 banks deposited an amount of $ 30 billion in First Republic Bank. So that it can be helped for some time and till then a solution can be found. Apart from JP Morgan, it includes Citigroup, Bank of America, Wells Fargo, Goldman Sachs and Morgan Stanley.
According to DFPI, as of April 13, 2023, the total assets of First Republic Bank are $ 229.1 billion, while the total deposits with the bank are about $ 103.9 billion.