U.S. regulator seizes First Republic Bank, to sell assets to JP Morgan
2023.05.01 04:24
© Reuters. FILE PHOTO: A security guard stands outside a First Republic Bank branch in San Francisco, California, U.S. April 28, 2023. REUTERS/Loren Elliott
(Reuters) -The California Department of Financial Protection and Innovation (DFPI) said on Monday it had closed First Republic Bank (NYSE:) and agreed a deal to sell its assets to JPMorgan Chase & Co (NYSE:) and National Association, in what is the third major U.S. bank to fail in two months.
JPMorgan bank was one of several interested buyers including PNC Financial Services Group (NYSE:), and Citizens Financial (NYSE:) Group Inc, which submitted final bids on Sunday in an auction being run by U.S. regulators, sources familiar with the matter said over the weekend.
A deal for First Republic, which had total assets of $229.1 billion as of April 13, comes less than two months after Silicon Valley Bank and Signature Bank (OTC:) failed amid a deposit flight from U.S. lenders, forcing the Federal Reserve to step in with emergency measures to stabilize markets. Those failures came after crypto-focused Silvergate voluntarily liquidated.
