Federal regulators seize, sell First Republic Bank to JPMorgan in second-largest US bank failure

First Republic had $229.1 billion in assets and approximately $103.9 billion in deposits as of mid-April.

Published: May 1, 2023 4:09am

Updated: June 28, 2023 4:38am

Regulators announced early Monday morning that they seized First Republic Bank and sold its deposits to JPMorgan Chase Bank, making the San Francisco-based bank the second-largest financial institution in U.S. history to collapse.

The California Department of Financial Protection and Innovation said it appointed the Federal Deposit Insurance Corporation as receiver of the bank, and the federal agency accepted a bid from JPMorgan to assume all of First Republic's deposits, including its uninsured deposits.

"Our government invited us to step up, and we did," JPMorgan Chase CEO Jamie Diamond said.

As of April 13, 2023, First Republic had $229.1 billion in assets and approximately $103.9 billion in deposits.

First Republic is the third major U.S. bank to collapse in less than two months, following the failures in early March of Silicon Valley Bank and Signature Bank.

Before the collapse of First Republic, the title of second-largest U.S. bank collapse went to SVB, which had roughly $212 billion in assets.

Madeleine Hubbard is an international correspondent for Just the News. Follow her on Twitter or Instagram.