US regulators freeze First Republic Bank after another bank collapse

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San Francisco: US financial authorities have acquired California’s First Republic Bank. This action has been taken on the bank after failing in banking operations. JPMorgan Chase Bank will acquire this bank.

The Federal Deposit Insurance Corporation said in a statement that in order to keep depositors’ money safe, FDIC Bank has talked to JP Morgan Chase Bank, National Association, Columbus, Ohio on a purchase agreement.

Now the deposits and entire assets of First Republic Bank will be transferred to them. The California Department of Financial Protection and Innovation said JP Morgan will now acquire all deposits, including uninsured and substantial assets.

The First Republic was unable to deliver any effective rescue plan and announced last week that the bank had lost $100 billion in deposits in the first quarter, causing the bank’s shares to fall.

A source, who did not wish to be named, said the federal government spoke to the FDIC when the bank’s situation worsened. Following this, the US Treasury Department contacted six banks last week to understand their interest in the assets of First Republic Bank.

First Republic Bank is the second largest bank in US history with assets of $ 233 billion and it has failed. Earlier in 2008, Lehman Brothers Bank went bankrupt.