Under fire First Republic Bank was dramatically seized by United States regulators and sold to JP Morgan before its complete collapse, becoming the third American bank to fail in the last two months.
It lost more than $150 billion in deposits during March after the collapse of Silicon Valley Bank sent shockwaves through the financial system and led consumers to rapidly withdraw funds to protect their earnings.
However, US regulators became increasingly concerned about the health of the lender with anxiety mounting after it became clear that efforts to save it or find a non-government buyer would fail. FDIC will share losses with JP Morgan on First Republic's loans, at an estimated hit of over $19 billion to its insurance fund, as well as providing more than $75 billion in financing to prop up the deal.
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