JPMorgan Chase & Co. will buy most of First Republic Bank's assets in a last-ditch rescue led by U.S. regulators, marking the third major U.S. institution to fail in two months, Reuters reported. The deal, announced today by regulators who said they had seized First Republic, will see the banking giant take $173 billion of loans, $30 billion of securities and $92 billion of deposits of the failed lender. There were no details on how much JPMorgan would pay. San Francisco-based First Republic came under intense pressure after disclosing last week that it had suffered more than $100 billion in outflows in the first quarter and was exploring options. The California Department of Financial Protection and Innovation said it had taken possession of First Republic and the Federal Deposit Insurance Corporation (FDIC) would act as its receiver. The FDIC estimated in a statement that the cost to the Deposit Insurance Fund would be about $13 billion. The final cost will be determined when the FDIC terminates the receivership. Read more.
The Senate Banking Committee will hold a hearing on Thursday at 10 a.m. ET titled, “Holding Executives Accountable After Recent Bank Failures.” Click here for more information.
