The Federal Deposit Insurance Corporation (FDIC) has stepped in to address the first bank bankruptcy of 2024, involving Philadelphia-based Republic Bank. The FDIC’s intervention aims to safeguard $6 billion in assets and $4 billion in customer deposits, which will be transitioned to Fulton Bank for management.
All 32 branches of Republic Bank in New Jersey, Pennsylvania, and New York will reopen under the control of Fulton Bank, ensuring that depositors can access their funds and continue their banking activities without interruption. Customers will be able to use checks, debit cards, and ATMs during this transition period, with loan payments expected to proceed as normal.
This development comes in the wake of notable bank failures in 2023, including Silicon Valley Bank, Signature Bank, and First Republic. The cost of Republic Bank’s bankruptcy is estimated to be around $667 million, to be covered by the FDIC’s deposit insurance fund.
The collapse of Republic Bank underscores ongoing concerns about the banking industry’s stability, exacerbated by challenges in the commercial real estate market and losses on Treasury bonds. Investors are advised to conduct their own research and not solely rely on the information provided for investment decisions.