JPMorgan Chase Acquires First Republic Bank

This year has not been a good year for banks. City National Bank settled for millions early this year. In March, two major banks — Silicon Valley Bank (SVB) and Signature Bank — went bankrupt. These weren’t the only banks to fail, but they were the most well known. Now, First Republic, the largest bank to fail since Washington Mutual in 2008, has been added to list of failed banks. After First Republic failed, it was briefly taken under government control before being auctioned off. JPMorgan Chase, who had also purchased Washington Mutual when it failed, is the new owner of First Republic. The entire situation with First Republic has cost the Federal Deposit Insurance Corporation (FDIC) about $13 billion.

However, analysts and federal regulators emphasize that the banking crisis has calmed down, now. When SVB and Signature Bank failed, fears were warranted. But those failures sparked an inquiry into which banks were likely to fail, and First Republic was identified as a likely candidate early on. So, this wasn’t entirely unexpected, and regulators were able to act quickly. Additionally, the FDIC admits that SVB’s failure was partially their fault, as they had not been meticulous in their supervision. Analysts aren’t expecting any additional major bank failures in the near future.

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