Monday, July 13, 2026

Distressed First Republic Bank seized, sold to JPMorgan Chase

In an emergency government-led intervention, JPMorgan Chase & Co. won the bidding to acquire First Republic Bank.

• May 1, 2023
FIRST REPUBLIC BANK; JPMORGAN CHASE
FIRST REPUBLIC BANK; JPMORGAN CHASE

In an emergency government-led intervention, JPMorgan Chase & Co. won the bidding to acquire First Republic Bank after unsuccessful private rescue efforts failed to close a hole on the ailing lender’s balance sheet.

The assets of First Republic, totalling $92 billion in deposits, $173 billion in loans, $30 billion in securities, and more, will be ceded to JPMorgan. 

The agency said in a statement early on Monday that the Federal Deposit Insurance Corp., which oversaw the sale, and JPMorgan have agreed to split any losses and gains on the company’s single-family and commercial loans.

The development came a few weeks after First Republic disclosed that during a panic last month, customers withdrew more than $100 billion from the accounts they had opened. This disclosure increased worries that the First Republic wouldn’t be able to exist independently. 

First Republic follows Silicon Valley Bank and Signature Bank, both of which experienced runs last month and were taken over by the government. 

As with Silicon Valley, a significant share of First Republic’s deposits were uninsured, which made it more prone to withdrawals from skittish customers.

In a rare move, 11 of the nation’s largest financial institutions gave First Republic $30 billion in deposits last month to prop up the troubled bank. 

First Republic is the third bank to undergo a run since last month, when Silicon Valley Bank and Signature Bank did so and were taken over by the government. 

Like Silicon Valley, a sizable portion of First Republic’s deposits were not insured, making it more vulnerable to withdrawals by wary clients.

Eleven of the biggest financial institutions in the country took a remarkable step last month and provided First Republic with $30 billion in deposits to support the struggling bank. 

Federal representatives from the FDIC, Treasury Department, and Federal Reserve met privately with other banks on Friday, according to Reuters, to arrange a private rescue for the First Republic. However, no private rescue decision was reached. 

Over the weekend, takeover discussions went on in the hopes of reaching an agreement before the U.S. stock markets opened on Monday.

The bank entered FDIC receivership with about $233 billion worth of assets. Since January, its shares have fallen by 97 per cent, devaluing the First Republic Bank by more than $21 billion.

We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.

More from Peoples Gazette

farmers

Agriculture

FG tasks ECOWAS on leveraging financing strategies for agroecology

The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices

Katsina State

Politics

Katsina youths pledge to deliver over 2 million votes to Atiku

“Katsina State is Atiku’s political base because it is his second home.”

A medical lab technician at work

World

University of Oxford develops new Ebola vaccine 

The vaccine would be assessed for safety and immune response in 50 healthy adults in the UK aged between 18 and 55.

Maj.-Gen. Adamu Laka

NationWide

Insecurity: Nigeria adopts victim-centred reintegration plan to strengthen communities

The national coordinator of the National Counter Terrorism Centre (NCTC), Maj

Peter Obi

Education

Suspension of WAEC, NECO fee hike victory for Nigerians, says Obi

“Education is a fundamental right and a public good, not a source of government revenue,” he said.

businessman Adimike Godwin

Abuja

Police arraign three over alleged murder of Abuja businessman Adimike Godwin

The court adjourned the case until September 30 for further proceedings.

Strait of Hormuz

World

U.S.-Iran War: Egypt, Saudi Arabia call for de-escalation, freedom of Strait of Hormuz navigation

Egypt and Saudi Arabia called for freedom of navigation in the Strait of Hormuz in accordance with international law.

President Yoon Suk Yeol

Uncategorized

Ex-South Korea president Yoon Suk Yeol jailed two years for political funding violation

Mr Suk Yeol was found guilty of illegally receiving free opinion polling services worth 270 million won ($179,800) from a political broker.