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First Republic Bank: California investors seize First Republic Bank, know what will happen now

Pankaj Prasad
First Republic Bank seized
First Republic Bank seized

California regulator has seized First Republic Bank.

California regulator has seized First Republic Bank. At the same time, JPMorgan Chase has taken control of all the deposits and most of the assets of the bank. The California Department of Financial Protection and Innovation (DFPI) said Monday that it has closed First Republic Bank and agreed to a deal to sell its assets to JPMorgan Chase & Co. and the National Association of Banks. First Republic Bank is the third major US bank to fail in the last two months.

JP Morgan placed the final bid in Sunday's auction

JPMorgan Bank was among several interested buyers, including PNC Financial Services Group and Citizens Financial Group Inc, that placed final bids on Sunday in an auction run by US regulators, a source with knowledge of the matter said over the weekend. California's Department of Financial Security and Innovation said in a statement that JPMorgan will take over First Republic's "all deposits, all uninsured deposits and substantially all assets."

First Republic became the third bank to collapse in America in less than two months

First Republic Bank, which had total assets of $229.1 billion as of April 13, is the third bank to close in less than two months after the failure of Silicon Valley Bank and Signature Bank. The Federal Reserve was forced to step in with bank auctions as emergency measures to stabilize the market. The crisis facing the bank came after the announcement of the end of the crypto-focused Silvergate.