JPMorgan to acquire troubled First Republic Bank

Regulation

The American banking giant JP Morgan Ch is set to acquire all the assets of First Republic Bank (FRC) after early efforts to rescue it failed. JPMorgan, along with multiple other banks, submitted a bid to acquire the assets of troubled FRC on April 29.

The California Department of Financial Protection and Innovation closed FRC on May 1 and entered into an agreement with the Federal Deposit Insurance Corporation (FDIC) as receiver. The FDIC then entered into a purchase and assumption agreement with JPMorgan Chase Bank to protect depositors. 

JPMorgan will assume all assets of First Republic Bank including uninsured deposits as well. FRC currently have $229.1 billion worth of assets $103.9 billion in deposits.

As part of the transfer, 84 locations of First Republic Bank in eight states will reopen as JPMorgan Chase Bank.

This is a developing story, and further information will be added as it becomes available.

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