JPMorgan First Republic deal ends second-biggest US bank failure
JPMorgan Chase & Co. agreed to acquire First Republic Bank in a government-led deal for the failed lender, putting to rest one of the biggest troubled banks remaining after industry turmoil in March.
By Jenny Surane, Hannah Levitt and Katanga Johnson / Bloomberg
The transaction, announced in the early morning hours Monday after First Republic was seized by regulators, makes the biggest US bank even larger while minimizing the damage to the Federal Deposit Insurance Corp.’s guarantee fund. JPMorgan agreed to the takeover after private rescue efforts failed to fill a hole on the troubled lender’s balance sheet and customers yanked their deposits. The collapse of First Republic was the second-biggest bank failure in US history.
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