The U.S. Treasury Department is encouraged that First Republic Bank was resolved with the least cost to the Deposit Insurance Fund, and believes the U.S. banking system remains sound and resilient, a Treasury spokesperson said today. U.S. regulators on Monday seized First Republic, the third major U.S. institution to fail in two months, with JPMorgan Chase & Co. agreeing to take $173 billion of the bank's loans, $30 billion of securities and $92 billion of deposits. "Treasury is encouraged that this institution was resolved with the least cost to the Deposit Insurance Fund, and in a manner that protected all depositors," the spokesperson said. "The banking system remains sound and resilient, and Americans should feel confident in the safety of their deposits and the ability of the banking system to fulfill its essential function of providing credit to businesses and families."
