Original title: First Republic Bank taken over, this time the second largest in US “bank failure” history
Reported on the reference news network on May 1 According to the US “Wall Street Journal” website and Reuters reports on May 1, US regulators took over First Republic Bank and reached an agreement to sell most of its business to JPMorgan Chase & Co., preventing his downfall. The collapse of the bank could reignite last month’s banking crisis.
According to reports, the California Bureau of Financial Protection and Innovation said on the 1st that regulators had taken over First Republic Bank. It was the third major US bank to fail in two months.
According to reports, the Federal Deposit Insurance Corporation said earlier on the 1st that JPMorgan Chase will take all of the First Republic’s $103.9 billion in deposits and buy most of its $229.1 billion in assets.
As part of the agreement, the FDIC will share losses with the banks. The agency estimated its insurance fund would lose $13 billion on the deal.
The report said that First Republic Bank of San Francisco, the second largest bank to fail in US history, lost $100 billion in deposits in the first quarter of this year after Silicon Valley Bank, also a Bay Area bank, collapsed. It has struggled for several weeks after some of the largest US banks bailed it out with $30 billion in deposits.
Three of the four largest US bank failures have occurred within the past two months. First Republic is second only to Washington Mutual, which collapsed in 2008, and Silicon Valley Bank and New York-based Signature Bank, which collapsed in March, round out the top four.
According to previous reports on the US “Wall Street Journal” website, people familiar with the matter revealed that major banks, including JPMorgan Chase & Co and PNC Financial Services Group, have submitted applications for First Republic Bank to Corporation US Federal Deposit Insurance.
The San Francisco-based bank has been reeling for weeks after Silicon Valley Bank collapsed on March 10, the report said. The collapse of Silicon Valley Bank led to a panic among First Republic customers, who withdrew about $100 billion in deposits in a short period of time.
Since then, the bank’s stock has fallen by around 97%. (Collection/Xie Kaihua)
