First Republic Bank was, on Monday, seized by the California Department of Financial Protection and Innovation and placed under the Federal Deposit Insurance Corporation (FDIC) receivership. The FDIC then gave the go-ahead for JP Morgan to purchase the bank’s assets and all its deposits.
As of April 13th, First Republic Bank’s assets stood at $229.1 Billion and deposits at $103.9 billion.
The FDIC said:
To protect depositors, the FDIC is entering into a purchase and assumption agreement with JPMorgan Chase Bank, National Association, Columbus, Ohio, to assume all of the deposits and substantially all of the assets of First Republic Bank.
First Republic’s Customers Will be Absorbed by JP Morgan
In addition, all customers of First Republic Bank will be assumed by JP Morgan.
JPMorgan Chase Bank, National Association submitted a bid for all of First Republic Bank’s deposits. As part of the transaction, First Republic Bank’s 84 offices in eight states will reopen as branches of JPMorgan Chase Bank, National Association, today during normal business hours.
All depositors of First Republic Bank will become depositors of JPMorgan Chase Bank, National Association, and will have full access to all of their deposits.
The FDIC will still insure customer deposits, and First Republic’s customers will not have to do anything from their end moving forward.
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