- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2023-05-01T15:51:00
San Francisco-based First Republic Bank was closed by state and federal banking regulators over the weekend, then sold to JPMorgan Chase Bank.
First Republic, with $229 billion in total assets and $104 billion in total deposits as of April 13, is the second-largest U.S. bank ever to fail. Only Washington Mutual, which collapsed during the 2008 financial crisis, was larger.
The California Department of Financial Protection and Innovation announced Monday it had taken possession of the bank and placed the Federal Deposit Insurance Corporation (FDIC) as the receiver. The FDIC then announced the sale of First Republic to JPMorgan, which will be “assuming all of the deposits” and “substantially all of First Republic Bank’s assets.”
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Loss of confidence following the March collapses of Silicon Valley Bank and Signature Bank was the primary reason First Republic Bank failed in May, according to an internal review conducted by the Federal Deposit Insurance Corporation.
The Federal Deposit Insurance Corporation issued a notice of proposed rulemaking regarding a special assessment on large banks to recover approximately $15.8 billion in losses attributable to the failures of Silicon Valley Bank and Signature Bank.
The Federal Reserve Board will likely recommend strengthening regulatory and supervisory procedures for mid-sized regional banks in the aftermath of the failure of Silicon Valley Bank.
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