First Republic Bank sold to JPMorgan Chase

The turmoil in the banking system continues after First Republic Bank reported last week that its clients had withdrawn more than $100 billion. On Monday, financial regulators stepped in and quickly accepted JPMorgan Chase’s offer for most of the lender’s assets.

The collapse of Silicon Valley Bank and Signature Bank affected other banking institutions. The Department of Financial Protection and Innovation (DFPI) acted in accordance with California law, arguing that The First Republic is in an unsafe situation for banking business, he also named the Federal Deposit Insurance Corporation (FDIC) as the recipient.

For on Wednesday of last week First Republic they have already lost 50% of their value, While financial regulators negotiated to find a viable solution, they failed to come up with a bailout plan.

In a statement, JPMorgan CEO Jamie Dimon noted that “andThis acquisition brings modest benefits to our company as a whole, it benefits shareholders, further advances our equity strategy, and complements our existing franchise,” he said.

Inviting financial regulators to JP Morgan Chase was the most viable solution, andThe largest US bank will receive $92 billion on deposits and will absorb $173 billion of loans, Reuters specifies.

Now First Republic is becoming the second largest bank in US history to collapse, the organization had $229 billion in assets. Existence Washington Mutual first since its collapse in 2008.. The nation’s largest savings bank association had about $309 billion and both businesses were sold to JPMorgan Chase.

Despite the collapse of the First Republic, the US Treasury Department said in a statement that it was still “the banking system remains strong and resilient, and Americans should feel confident the safety of their deposits and the ability of the banking system to perform its primary function of providing loans to companies and families,” he said.