Failure of First Republic Bank can indicate a banking crisis on the horizon
💰 Failure of First Republic Bank can indicate a banking crisis on the horizon.
JPMorgan Chase has acquired the majority of the assets of First Republic Bank following the federal government's seizure of the regional bank. First Republic is the second-largest bank failure in US history, following Washington Mutual which collapsed in 2008 and was also acquired by JPMorgan. It follows the failure of Silicon Valley Bank and Signature Bank in March, but this banking crisis seems to be one that is unfolding slowly. The deal protects all of First Republic's depositors, but JPMorgan will not take on any of the bank's corporate debt or preferred stock, meaning that First Republic's shareholders and debtholders will be wiped out, as is typical in a bank failure.
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