Another addition to the list is Silicon Valley Bank, which had $67 billion in assets at the time of its bankruptcy.
By iProfessional
01/05/2023 – 12,02hs
For just over a month, Silicon Valley Bank was the second largest bank failure in US history, that was until First Republic Banka California lender that served wealthy clients, removed him from that venue.
First Republic was seized by the Federal Deposit Insurance Corporation early this Monday after failing to repair the damage caused by a spate of customer withdrawals and falling asset prices. The US regulator has reached an agreement for JPMorgan to take over the bank’s assets, including $173 billion in loans and $30 billion in securities, as well as $92 billion in deposits, after that talks to bail out the lender would drag on for weeks.
The US$229 billion in assets of First Republic as of April 13 they rank it just behind Washington Mutual, which imploded in 2008 with $307 billion in such holdings and total deposits of $188 billion. At that point, the FDIC seized the Seattle-based firm’s banking operations and sold them to JPMorgan for $1.9 billion.
Among the biggest FDIC failures of this century, three occurred in recent weeks with the collapses of Silicon Valley Bank y Signature Bank in early March. Silicon Valley Bank had $167 billion in assets at the time of its bankruptcy.
First Republic becomes the second largest bank failure in US history.
JP Morgan to the rescue
California financial regulators embargoed the First Republic Bank and sold all their deposits and most of their assets to the JPMorgan Chase Bankin an attempt to prevent further banking turmoil in the United States.
San Francisco-based First Republic is the third midsize bank to fail in two months. Since the bankruptcy of Silicon Valley Bank y Signature Bankinvestors and depositors have become increasingly concerned that it may not survive due to its high volume of uninsured deposits and its exposure to low interest rate loans.
The Federal Deposit Insurance Corporation (FDIC), reported early Monday that First Republic Bank’s 84 branches in eight states will reopen Monday as branches of JPMorgan Chase Bank.
Regulators worked over the weekend to find a way out before the US stock markets opened. Markets in many parts of the world were closed on Monday for the May 1 holiday. The two open Asian markets, Tokyo and Sydney, rose. As of April 13, First Republic it had about $229 billion in total assets and $104 billion in total deposits, according to the FDIC. At the end of last year, the Federal Reserve ranked it 14th in size among US commercial banks.
