Another major bank goes bankrupt in the US

US bankFirst Republic Bank is another bank that went bankrupt in the United States. Most of its assets were bought by JPMorgan Chase. This was reported by CNN Business.

JPMorgan Chase CEO Jamie Dimon said the deal is beneficial for his bank’s shareholders, as it increases the bank’s expected future profits.

JPMorgan Chase will pay the FDIC $10.6 billion and return to other banks $25 billion of funds they deposited with First Republic in March as a bailout agreed by the Treasury. Also, JPMorgan Chase will not assume First Republic’s corporate debt and will receive $50 billion in financing from the FDIC to complete the deal.

First Republic Bank will open 84 offices in eight states as branches of JPMorgan Chase Bank. The collapse of First Republic Bank was the largest since the collapse of Washington Mutual in 2008 and the third such incident in the last two months after Silicon Valley Bank (SVB) and Signature Bank closed in March.

California-based First Republic Bank specialized in mortgage lending (79% of its loans were mortgages). It was ranked 14th in terms of consolidated assets on the Fed’s 2022 list.


Author: Daria Skotchenko

Photo: pexels


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