A JPMorgan Chase branch in New York City
Federal regulators seized First Republic Bank over the weekend and sold it to JPMorgan Chase & Co. in what was the second-largest bank failure in U.S. history after the 2008 collapse of Washington Mutual.
The move came after First Republic teeter-tottered on the brink for weeks following the collapse of Silicon Valley Bank and Signature Bank in March of this year.
The three failed banks this year were bigger than the 25 that crumbled in the 2007-2008 financial crises.
Put differently, three of the four largest-ever bank failures in the United States have taken place in the past two months.
San Francisco-based First Republic lost $100 billion in deposits in the March run on the bank that followed the collapse of the two fellow Bay Area lenders.
The last-minute deal means that JPMorgan is poised to become larger than ever. It had $2.4 trillion on deposit at the end of Q1 2023.
The multinational financial services company said it bid on First Republic to help stabilize the financial system.
“Our government invited us and others to step up, and we did,” said JPMorgan CEO Jamie Dimon Monday.
(Photo: Accura Media Group)
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