The US financial authorities announced Monday that they have taken possession of the Californian bank First Republic Bank, which is in difficulties, and which will be acquired by JPMorgan Chase. It is the latest in a series of bank failures in the United States.
The bailout of regional bank First Republic, seized by US authorities before being largely bought out by JPMorgan Chase, the move will help stabilize the banking sector, JPMorgan Chief Executive Jamie Dimon said. “Hopefully this helps.” to stabilize everything,” Dimon stressed in a conference with journalists.
The Federal Deposit Insurance Corporation (FDIC), the regulator in charge of guaranteeing bank deposits, reported that it adopted the measure to protect the accounts.
“To protect depositors, the FDIC will enter into a takeover agreement with JPMorgan Chase Bank, National Association, Columbus, Ohio, to assume all deposits and substantially all assets of First Republic Bank.” the regulator said in a statement.
JPMorgan will assume “all deposits, including uninsured, and most assets,” the California Department of Financial Protection and Innovation (DFPI) reported.
First Republic failed to come up with a viable bailout plan. It revealed last week that it had lost more than $100 billion in deposits in the first quarter, sending its shares tumbling.
The Federal Government intervened through the FDIC and the US Treasury. With assets totaling about $233 billion at the end of March, First Republic would be the second-biggest bank to fail in US history, after the failure of Washington Mutual in 2008, excluding investment banks such as Lehman. Brothers.
