Original title: The First Republic Bank was taken over, this time the second largest in the history of the “bank failure” in the United States
Reference news network reported on May 1 According to the US “Wall Street Journal” website and Reuters reports on May 1, US regulators took over First Republic Bank and reached an agreement to sell most of its business to JPMorgan Chase & Co., preventing its collapse. The bank’s collapse could reignite last month’s banking crisis.
According to reports, the California Bureau of Financial Protection and Innovation said on the 1st that regulators have taken over First Republic Bank. It was the third major U.S. bank to fail in two months.
According to reports, the Federal Deposit Insurance Corporation said earlier on the 1st that JPMorgan Chase will assume all of First Republic’s $103.9 billion in deposits and buy most of its $229.1 billion in assets.
As part of the agreement, the FDIC will share losses with the banks. The agency estimated that its insurance fund would lose $13 billion on the deal.
The report mentioned that the San Francisco-based First Republic Bank, the second largest bank to fail in U.S. history, lost $100 billion in deposits in the first quarter of this year after the collapse of Silicon Valley Bank, also a Bay Area bank. It has struggled for several weeks after some of the biggest US banks bailed it out with $30 billion in deposits.
Three of the four largest U.S. banks ever to fail have occurred within the past two months. First Republic is second only to Washington Mutual, which collapsed in 2008. Rounding out the top four are Silicon Valley Bank and New York-based Signature Bank, which collapsed in March.
According to previous reports on the US “Wall Street Journal” website, people familiar with the matter revealed that major banks, including JPMorgan Chase & Co. and PNC Financial Services Group, submitted bids for First Republic Bank to the Federal Deposit Insurance Corporation of the United States.
The San Francisco-based bank has been teetering for weeks after Silicon Valley Bank collapsed on March 10, the report said. The collapse of Silicon Valley Bank spurred panicked First Republic customers, who withdrew some $100 billion in deposits in a short period of time.
Since then, the bank’s stock has fallen about 97%. (compiled/Xie Kaihua)