JP Morgan Chase takes over US bank First Republic

Even an aid campaign by large US financial institutions was apparently not enough: the US bank First Republic was taken over by the financial group JP Morgan Chase. The bank got into trouble after the bankruptcy of Silicon Valley Bank.

The struggling US bank First Republic is being taken over by the financial group JP Morgan Chase. First, the US deposit insurance FDIC is to become the trustee of the institute. After that, JP Morgan takes over the bank with all deposits and virtually all assets. This was announced by the California financial regulator DFPI. The bank’s 84 branches in eight US states were scheduled to open Monday as branches of JP Morgan Chase.

Stocks at record lows

Since the collapse of Silicon Valley Bank and Signature Bank, the money house has been struggling with the fact that many customers have withdrawn their money. Despite an aid campaign by the largest US financial institutions in coordination with the Treasury Department and the Federal Reserve, the situation remained precarious. In the concerted action had Big banks initially put $30 billion into First Republic Bank.

Earlier last week, however, the First Republic disclosed a deposit outflow of more than $100 billion in the first quarter. Investors sold shares in the bank en masse, after which the stock market crashed. First Republic Bank shares were temporarily suspended from trading on Friday.