- Citizens Financial Group Inc and PNC Financial Services Group were also contenders.
- JPMorgan Chase will be taking over all deposits, both insured and uninsured.
First Republic Bank (NYSE: FRC) is being acquired by JPMorgan Chase & Co (JPM.N) after extensive efforts by U.S. authorities to save the bank failed. The FRC will be seized by financial authorities in advance of the sale. However, Citizens Financial Group Inc (CFG.N) and PNC Financial Services Group (PNC.N) were also contending to acquire FRC.
Authorities from the state of California’s Department of Financial Protection and Innovation (DFPI) have seized First Republic Bank. It was revealed that FRC’s assets had been turned over to the FDIC as receiver. JPMorgan Chase, however, will be taking over all deposits, both insured and uninsured.
Banking Crisis Continues
On April 13, 2023, it was reported that First Republic Bank had around $229.1 billion in total assets. It is estimated that there are a total of $103.9 billion in deposits. However, there is some protection for depositors thanks to the FDIC.
It’s worth noting that the buyout agreement with FRC came on the heels of the identical failures of two U.S. banks, Silicon Valley Bank and Signature Bank.
First Republic Bank came to light after Silicon Valley Bank failed because it too had specialized in working with tech-related startup companies. The share price of First Republic Bank (NYSE: FRC) has fallen by more than 75% in the last week.
In spite of the escalating financial crisis, the cryptocurrency market staged a comeback surge. The total value of all cryptocurrencies on the market has fallen by almost 4% in the last day, to $1.17 trillion. The value of Bitcoin (BTC) has increased by more than 22% in the last 60 days. Over the past day, the value of Bitcoin has dropped by over 4%.
