Major bank failure: First Republic Bank seized by Us regulators
USA Latest News: The financial regulators in the United States have seized First Republic Bank of California after it failed to perform well in banking operations. JPMorgan Chase Bank will acquire the bank. The Federal Deposit Insurance Corporation (FDIC) has stated that they have reached an agreement with JPMorgan
Chase Bank, National Association, from Columbus, Ohio, to purchase FDIC-insured deposits and substantial assets of the bank for safekeeping of depositors. Now, all deposits and assets of First Republic Bank will be transferred to JPMorgan Chase. First Republic Bank was unable to provide any effective bailout plan and last
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announced that the bank suffered a loss of $100 billion in deposits in the first quarter, causing a decline in the bank's shares.
A formula disclosed that in the event of a bank's financial situation deteriorating, the Federal government contacted the FDIC, an institution that guarantees people's deposits without revealing
its name. Following this, the US Treasury Department contacted six banks last week to better understand their interest in First Republic Bank's assets.
First Republic Bank is the second-largest bank in US history, with assets worth $233 billion, which failed. Prior to this, in 2008, Lehman Brothers Bank had gone bankrupt.