After rescue efforts failed to undo the damage from bad investments and depositor runs that had roiled regional lenders, regulators have taken control of First Republic Bank, and the US-based crisis-hit lender will be acquired by JPMorgan Chase & Co.
According to a statement from the California Department of Financial Protection and Innovation, JPMorgan would “assume all deposits, including all uninsured deposits, and substantially all assets” of First Republic.
“The Federal Deposit Insurance Corporation (FDIC) was named First Republic Bank's receiver by the DFPI. In order to take all deposits, including all uninsured deposits, and essentially all assets of First Republic Bank, the FDIC has accepted a proposal from JPMorgan Chase Bank, National Association, Columbus, Ohio, the agency said.
First Republic Bank, a San Francisco-based institution, with around $229.1 billion in total assets as of April 13, 2023, and roughly $103.9 billion in total deposits. Subject to any applicable limits, the FDIC provides federal insurance for its deposits.
“The DFPI took action pursuant to California Financial Code section 592, subdivisions (b) and (c), specifically “doing its business in an unsafe or unsound manner” and being in a “condition that… is hazardous or unsound” to transact banking business,” according to the statement.
