First Republic Bank to Cease Operations, JP Morgan Announces Acquisition

US regulators closed down First Republic Bank on Monday and announced an agreement with JP Morgan Chase Bank to acquire all deposits and assets of the troubled bank. The move was aimed at protecting depositors, and the Federal Deposit Insurance Corporation (FDIC) confirmed in a statement that JPMorgan Chase Bank would assume all deposits and "substantially all" of First Republic Bank's assets.

JPMorgan Chase Bank submitted a bid for all of First Republic Bank's deposits, and as part of the agreement, First Republic Bank's 84 offices in eight US states will reopen as branches of JPMorgan Chase Bank from Tuesday. All depositors of First Republic Bank will become depositors of JPMorgan Chase Bank, and they will have full access to their deposits.

The FDIC stated that the deposits of First Republic Bank's customers would continue to be insured by the agency, and there was no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers of First Republic Bank should continue to use their existing branch until they receive notice from JPMorgan Chase Bank that it has completed systems changes to allow other branches to process their accounts.

As of April 13, 2023, First Republic Bank had approximately USD 229.1 billion in total assets and USD 103.9 billion in total deposits. In addition to assuming all of the deposits, JPMorgan Chase Bank agreed to purchase "substantially" all of First Republic Bank's assets.

The collapse of a few regional banks in the US, including Silicon Valley Bank, has raised concerns about a contagion effect across economies. Silicon Valley Bank, which was struggling, collapsed on March 10 after a run on the bank by depositors, leading to the subsequent shutting down of other banks, including First Republic Bank.

Important News Tags and Headlines for Readers

US Regulators Close First Republic Bank, JP Morgan Acquires Assets to Protect Depositors

JPMorgan Chase Bank Acquires First Republic Bank's Deposits and Assets

First Republic Bank Closes, JP Morgan Steps In as Acquirer

JP Morgan to Purchase Assets of Troubled First Republic Bank

US Regulators Close First Republic Bank, JP Morgan Takes Over

JP Morgan Chase Takes Over Deposits and Assets of First Republic Bank After Closure