Washington: First Republic Bank was closed by the US regulators and is set to be acquired by JP Morgan Chase & Co, in a bid to protect depositors.
Federal Deposit Insurance Corporation in a statement said that “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,”.
JP Morgan Chase & Co submitted a bid for all of the First Republic Bank’s deposits. According to reports, First Republic Bank’s 84 offices in eight states in the US will reopen as branches of JPMorgan Chase Bank, and National Association starting Monday.
All depositors of First Republic Bank will become depositors of JPMorgan Chase Bank, National Association, and will have full access to all of their deposits.
As of April 13, 2023, First Republic Bank had approximately USD 229.1 billion in total assets and USD 103.9 billion in total deposits. In addition to assuming all of the deposits, JPMorgan Chase Bank agreed to purchase “substantially” all of First Republic Bank’s assets.
The collapse of a few regional banks in the US, which started with Silicon Valley Bank, has sent ripples across the global banking industry and posed fears of a contagion effect across economies.
(With Agency Inputs)
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