Another US Bank Shut Down; First Republic Bank’s Assets To Be Taken Over JP Morgan

New Delhi: In an effort to safeguard depositors, First Republic Bank, a US-based institution, entered into an agreement with JP Morgan Chase Bank to buy and assume all of the troubled bank’s deposits and assets on Monday (local time).

The US agency Federal Deposit Insurance Corporation said in a statement: “To protect depositors, the FDIC is entering into a purchase and assumption agreement with JP Morgan Chase Bank, National Association, Columbus, Ohio, to assume all of the deposits and virtually all of the assets of First Republic Bank.” An offer was put out by JPMorgan Chase Bank, National Association to purchase all of First Republic Bank’s deposits.

According to the agreement, the 84 locations of First Republic Bank in eight US states will reopen as branches of JPMorgan Chase Bank, National Association as of right now. First Republic Bank’s entire depositor base will transfer to JPMorgan Chase Bank, National Association, where they will have complete access to all of their funds.

First Republic Bank had about USD 229.1 billion in total assets and USD 103.9 billion in total deposits as of April 13, 2023. JPMorgan Chase Bank also agreed to acquire “substantially” all of First Republic Bank’s assets in addition to taking on all of the deposits.

After a run on the bank by depositors on March 10, Silicon Valley Bank, one of the most well-known lenders in the world of technology startups, first went under. As a result of its liquidation, other banks, notably First Republic Bank, were forced to follow suit.

The failure of a few small regional US banks, which began with Silicon Valley Bank, has had an impact on the worldwide banking sector and raised concerns about an economic chain reaction.