Another turn in the latest banking crisis happened overnight as regulator seized the San Francisco-based First Republic Bank. The Federal Deposit Insurance Corp took control of First Republic Bank and immediately sold it to JPMorgan Chase.
First Republic has a high level of exposure to the California-based tech and real estate industries, as well as many high-net-worth people who bank there.
With the sale, all branches of First Republic will reopen today as branches of JPMorgan Chase. All of the bank’s depositors will be assumed by JPMorgan and will have full access to all of their deposits.
According to multiple sources, First Republic Bank was experiencing financial difficulties and was reportedly on the verge of collapse. Federal regulators were holding an auction for ailing First Republic Bank and multiple big banks, including JPMorgan Chase, were bidding for the regional bank, however regulators ultimately took control over the weekend.
The bank reported total assets of $233 billion as of March 31 and was ranked 14th in size among U.S. commercial banks by the Federal Reserve at the end of last year. Shares of First Republic fell 78 percent last week to close at $3.51.