JPMorgan to take over First Republic
First Republic FDIC estimates $13 billion hit to Deposit Insurance Fund
The deal will see First Republic depositors — which include 11 leading banks that made $30 billion in a show of confidence — with full access to their deposits.
All 84 First Republic offices will reopen as JPMorgan Chase later on Monday, the government said.
MarketWatch 1 May 2023
Chase was known as Chase Manhattan Bank until it merged with J.P. Morgan & Co. in 2000.
Chase Manhattan Bank was formed by the merger of the Chase National Bank and the Manhattan Company in 1955.
The bank merged with Bank One Corporation in 2004 and in 2008 acquired the deposits and most assets of Washington Mutual.
Washington Mutual
When the subprime bubble burst, the bank’s fortunes quickly turned. In September 2008, at the height of the financial crisis, Killinger was forced out by the company’s board, and ultimately the bank was seized by federal regulators.
It still stands as the largest bank failure in U.S. history.
Book, “Nothing Is Too Big to Fail: How the Last Financial Crisis Informs Today,”
First Republic Joins List of Biggest-Ever Bank Failures
Collapse is second-largest, behind Washington Mutual
First Republic’s $229 billion of assets as of April 13 slots it just behind Washington Mutual Inc., which imploded in 2008 with $307 billion in such holdings and total deposits of $188 billion. At that time, the FDIC seized the Seattle-based firm’s banking operations and sold them to JPMorgan for $1.9 billion.
Among the biggest FDIC failures this century, three have occurred in the past several weeks
It was the FDIC that blinked.
Paul J. Davies Bloomberg 1 maj 2023
Why First Republic Bank Collapsed
It failed to reckon with the impact of rising interest rates, which sent its strategy of relying on wealthy depositors into reverse
WSJ 1 April 2023
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