Banking giant JPMorgan will take over the assets of the troubled First Republic Bank after its seizure by the California Department of Financial Protection and Innovation.
The American banking giant JPMorgan Chase is set to acquire First Republic Bank’s (FRB) assets after early efforts to rescue it failed. JPMorgan and multiple other banks submitted a bid to acquire the assets of troubled FRB on April 29.
The California Department of Financial Protection and Innovation closed FRB on May 1 and entered into an agreement with the Federal Deposit Insurance Corporation (FDIC) as the receiver. The FDIC then entered into a purchase and assumption agreement with JPMorgan to protect depositors.
JPMorgan will assume all assets of First Republic Bank including uninsured deposits. FRC currently have $229.1 billion worth of assets and $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. All depositors of FRC will become a part of JP Morgan and will have access to their full deposits insured by FDIC. Customers can continue to avail of banking services at the current branch until they receive any notification of change from JP Morgan.
Apart from the transfer of assets,
This is a developing story, and further information will be added as it becomes available.
