Image: MIKE SEGAR (X90033)
First, the US deposit insurance FDIC trustee of the institute, as the California financial regulator DFPI announced on Monday. In the next step, JPMorgan will take over First Republic with all deposits and practically all assets.
Stocks at record lows
Shares in First Republic Bank were temporarily suspended from trading on Friday after falling more than 50 percent to a record low. Since the collapse of Silicon Valley Bank and Signature Bank, the money house has been struggling with many customers withdrawing their money. The background to the problems was the sudden rise in key interest rates. Despite an aid campaign by the largest US financial institutions in coordination with the Treasury Department and the Federal Reserve, the situation remained precarious.
According to insiders, half a dozen banks originally took part. In addition to JPMorgan Chase, these also include Citizens Financial and PNC Financial Services. The FDIC has repeatedly asked bidders to revise their bids and clarify certain options for the assets being offered, a person familiar with the matter told Reuters on Sunday.
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