FRC - JPMorgan Chase Buys First Republic After FDIC Seizure: Is the Banking Crisis Over?
2023-05-01 10:14:00 ET
The saga of First Republic Bank (NYSE: FRC) came to a close over the weekend, as the Federal Deposit Insurance Corporation (FDIC) took over the San Francisco-based financial institution. The regulatory agency then entered into an agreement with the banking subsidiary of JPMorgan Chase (NYSE: JPM) under which the Wall Street giant will assume all of First Republic's deposits and substantially all of the embattled bank's assets.
The move is the latest in a series of bank failures this year, and it once again raised concerns about the stability of the financial system more broadly. But the news was good for depositors of First Republic, and JPMorgan's stock was up Monday morning.
The FDIC held a snap auction, soliciting competitive bids from several different financial institutions. Various reports named banks including PNC Financial , Citizens Financial , U.S. Bancorp , and Bank of America as possibly having received invitations from the FDIC to request bids for First Republic, although those banks generally chose not to comment on those reports.
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JPMorgan Chase Buys First Republic After FDIC Seizure: Is the Banking Crisis Over?