JPMorgan Chase acquired First Republic bank that survived the collapse

WASHINGTON, May 1.

JPMorgan Chase Bank bought First Republic after its stock went down sharply. The U.S. Federal Deposit Insurance Corporation announced this on Monday.

“As part of the deal, 84 First Republic Bank branches will open today during normal business hours in eight states as branches of JPMorgan Chase Bank. All First Republic Bank depositors will become JPMorgan Chase Bank depositors and will have full access to all of their deposits,” the corporation said in a statement posted on its website.

“As of April 13, 2023, First Republic Bank had about $229.1 billion in assets and $103.9 billion in deposits,” the agency points out. It notes that “the decision was made following a highly competitive bidding process” to “protect depositors.”

Earlier, the Federal Deposit Insurance Corporation asked banks JPMorgan Chase and PNC to provide by April 30 final offers for the acquisition of First Republic. In this way the regulator tried to organize a more accurate sale than the protracted auctions after the collapse of Silicon Valley Bank and Signature Bank.

On April 26, First Republic’s stock plummeted more than 21 percent on the New York Stock Exchange after it released financial statements showing that the bank lost more than $100 billion in deposits during the first quarter. On April 28, the bank’s shares plummeted another 30%.

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