JP Morgan to Acquire Republic Bank, a 'Financial Risk' Institution

First Republic Bank is being acquired by JP Morgan Chase.

Image source=Reuters·Yonhap News

According to AFP and other sources, the California Department of Financial Protection and Innovation (DFPI) announced on the 1st (local time) that it had seized First Republic Bank, headquartered in San Francisco, and initiated the sale process.

DFPI appointed the Federal Deposit Insurance Corporation (FDIC) as the receiver and accepted a proposal from JP Morgan Chase Bank in Columbus, Ohio, to assume all deposits.

The FDIC stated, "To protect depositors, we are entering into an agreement with JP Morgan Chase Bank to assume assets and liabilities," adding, "JP Morgan Chase will acquire all deposits and assets of First Republic Bank."

Following the collapse of Silicon Valley Bank (SVB), regional banks in the United States faced a crisis. The U.S. Treasury Department, the Federal Reserve (Fed), and the FDIC took measures such as deposit protection and liquidity support to prevent a chain of bankruptcies.

However, the crisis did not subside as customers of regional banks, sensing danger, withdrew deposits and moved them to large banks. The White House has also been closely monitoring the situation of First Republic and recently stated that it is prepared to intervene immediately if necessary.

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