First Republic Bank Seized by Government, Sold to JPMorgan
Summary from the AllSides News Team
JPMorgan Chase has purchased First Republic Bank after it was seized by the federal government.
The Details: JPMorgan Chase has assumed "all deposits, including all uninsured deposits, and substantially all assets of First Republic Bank," and its 84 branches will reopen Monday as part of JPMorgan Chase. The bank acquired First Republic from the Federal Deposit Insurance Corporation, the independent government agency that insures deposits for banks, which had seized First Republic after its stock plunged roughly 97% over the last six weeks.
Key Quotes: The government said it seized First Republic Bank because it was "conducting its business in an unsafe or unsound manner."
For Context: First Republic Bank is based in San Francisco, and had total assets worth approximately $229.1 billion and total deposits of approximately $103.9 billion. The collapse follows Silicon Valley Bank and Signature Bank failing earlier this year. The cause was similar, as panicked depositors and investors withdrew their money en masse. All three are now among the four biggest bank failures in U.S. history, trailing only Washington Mutual in 2008.
How the Media Covered It: Sources across the spectrum highlighted the news prominently Monday. Most suggested the failure wouldn't spark further panic in the banking sector.
Featured Coverage of this Story
From the Left
JPMorgan Chase to buy most First Republic assets after bank fails![AllSides Media Bias Rating: Lean Left AllSides Media Bias Rating: Lean Left](https://www.allsides.com/sites/default/files/bias-leaning-left.png)
JPMorgan Chase is buying most assets of First Republic Bank after the nation’s second-largest bank failure ever, in a deal announced early Monday that protects the deposits of First Republic’s customers.
JPMorgan Chase said it had acquired “the substantial majority of assets” and assumed the deposits, insured and uninsured, of First Republic from the Federal Deposit Insurance Corporation, the independent government agency that insures deposits for bank customers.
“In carrying out this transaction, JPMorgan Chase is supporting the US financial system through its significant strength and execution capabilities,” the bank said in...
From the Center
First Republic Bank Is Seized, Sold to JPMorgan in Second-Largest U.S. Bank Failure![AllSides Media Bias Rating: Center AllSides Media Bias Rating: Center](https://www.allsides.com/sites/default/files/bias-center.png)
![](https://www.allsides.com/sites/default/files/styles/feature_image_300x200/public/im-772930.jpg?itok=3ZuEhPD9)
Regulators seized First Republic Bank and struck a deal to sell the bulk of its operations to JPMorgan Chase & Co., heading off a chaotic collapse that threatened to reignite the recent banking crisis.
JPMorgan said it will assume all of First Republic’s $92 billion in deposits—insured and uninsured. It is also buying most of the bank’s assets, including about $173 billion in loans and $30 billion in securities.
As part of the agreement, the Federal Deposit Insurance Corp. will share losses with JPMorgan on First Republic’s loans. The agency estimated that its insurance fund...
From the Right
First Republic Bank: JPMorgan Chase buys control of failed bank after federal regulators seized control![AllSides Media Bias Rating: Lean Right AllSides Media Bias Rating: Lean Right](https://www.allsides.com/sites/default/files/bias-leaning-right.png)
Financial regulators in California took control of First Republic Bank and appointed the Federal Deposit Insurance Corporation in charge, who then sold the bank to JPMorgan Chase, the California Department of Financial Protection and Innovation announced early Monday morning.
JPMorgan Chase has now assumed "all deposits, including all uninsured deposits, and substantially all assets of First Republic Bank," and its 84 branches in eight states will reopen Monday as part of JPMorgan Chase.
The DFPI said it took lawful action by seizing First Republic Bank because it was “conducting its business in an unsafe or...
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