First Republic Bank has been seized by California regulators and sold to JPMorgan Chase in what marks the third US bank failure in just seven weeks, according Independent.
The California Department of Financial Protection announced in a press release on Monday morning that it has taken possession of the bank and appointed the Federal Deposit Insurance Corporation as the bank’s receiver.
The FDIC has accepted a bid from JPMorgan Chase Bank to take control of all the bank’s assets including all uninsured deposits.
The drastic move to seize First Republic Bank comes after rescue talks failed and concerns have continued about a full-scale banking crisis unfolding.
First Republic Bank has been under close watch since 10 March when Silicon Valley Bank first collapsed, marking the second biggest bank failure in American history.
Two days later, Signature Bank was next to fail and was seized by regulators in New York.
After that, the banking industry and the Biden administration sought to reassure Americans that the nation’s banking system was safe and urged people not to pull their deposits, potentially leading to more runs on banks.
But First Republic Bank was eyed as the next bank expected to fail.
