Regulators have taken over First Republic Bank, and the US-based crisis-hit lender will be acquired by JPMorgan Chase & Co after rescue efforts failed to undo the damage from wrong-way investments and depositor runs that have roiled regional lenders, according to a Bloomberg report.
JPMorgan will “assume all deposits, including all uninsured deposits, and substantially all assets” of First Republic, the California Department of Financial Protection and Innovation said in a statement.
“The DFPI appointed the Federal Deposit Insurance Corporation (FDIC) as receiver of First Republic Bank. The FDIC has accepted a bid from JPMorgan Chase Bank, National Association, Columbus, Ohio, to assume all deposits, including all uninsured deposits, and substantially all assets of First Republic Bank,” the department said.
As of April 13, 2023, First Republic Bank, based in San Francisco, had total assets of approximately $229.1 billion and total deposits of about $103.9 billion. Its deposits are federally insured by the FDIC subject to applicable limits.
“The DFPI took action pursuant to California Financial Code section 592, subdivisions (b) and (c), specifically “conducting its business in an unsafe or unsound manner” and being in a “condition that … is unsafe or unsound” to transact banking business,” according to the statement.
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