In what is the third significant United States bank failure in two months, the California Department of Financial Protection and Innovation (DFPI) said on Monday that it had closed First Republic Bank (FRC.N) and reached an agreement to sell its assets to JPMorgan Chase & Co (JPM.N) and National Association.
JP Morgan Bank was one of several prospective buyers, along with PNC Financial Services Group (PNC.N) and Citizens Financial Group Inc. (CFG.N) that filed final offers on Sunday in an auction being held by American regulators; Reuters reported quoting people familiar with the situation.
An offer for First Republic comes less than two months after Silicon Valley Bank and Signature Bank failed due to a deposit flight from American lenders, leading the Federal Reserve to intervene with emergency measures to stabilise the markets. As of April 13, First Republic had total assets of $229.1 billion. Those failures followed the voluntary liquidation of cryptocurrency-focused Silvergate.
