Dhe First Republic, caught up in the US banking crisis, is sold to the bank JPMorgan Chase. The FDIC, the state deposit insurance fund, announced on Monday that it had approved the sale of the bankrupt bank’s assets to JP Morgan. According to insiders, half a dozen banks participated in the bidding process for First Republic, including Citizens Financial and PNC Financial Services.
The First Republic is already the third US bank that has recently found itself in existential difficulties because customers withdrew their deposits en masse. As a result, Silicon Valley Bank and Signature Bank collapsed in March.
In a concerted effort, major banks initially poured $30 billion into First Republic Bank, which was also reeling. Earlier last week, however, the First Republic disclosed a deposit outflow of more than $100 billion in the first quarter. Investors sold shares in the bank en masse, after which the stock market crashed. It was announced on Friday that the FDIC had identified a further deterioration in the bank’s situation and had launched a new bailout.