Monday, 1 May 2023

First Republic Bank Falls; JPMorgan Takes Over Debts and Assets

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First Republic Bank Falls; JPMorgan Takes Over Debts and Assets

First Republic Bank has fallen despite an organized campaign by other banks to prop it up and avoid the same face as Silicon Valley Bank.

Following the collapse of SVB, Signature Bank, and Credit Suisse, JPMorgan’s Jamie Dimon led a coalition of banks in an effort to help stabilize First Republic, going so far as to deposit some $30 billion into the troubled bank.

Despite the effort, the FDIC announced the bank’s closure Monday:

First Republic Bank, San Francisco, California, was closed today by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect depositors, the FDIC is entering into a purchase and assumption agreement with JPMorgan Chase Bank, National Association, Columbus, Ohio, to assume all of the deposits and substantially all of the assets of First Republic Bank.

The FDIC says all 84 of First Republic’s offices will reopen as branches of JPMorgan. Customer deposits will continue to be insured by the FDIC:

Deposits will continue to be insured by the FDIC, and customers do not need to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of First Republic Bank should continue to use their existing branch until they receive notice from JPMorgan Chase Bank, National Association, that it has completed systems changes to allow other JPMorgan Chase Bank, National Association, branches to process their accounts as well.

As of April 13, 2023, First Republic Bank had approximately $229.1 billion in total assets and $103.9 billion in total deposits. In addition to assuming all of the deposits, JPMorgan Chase Bank, National Association, agreed to purchase substantially all of First Republic Bank’s assets.

First Republic Bank Falls; JPMorgan Takes Over Debts and Assets
Staff



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