JPMorgan Ends First Republic’s Turmoil After FDIC Seizure
- Largest US lender poised to grow even bigger after deal
- Bad investments, run on deposits led to bank’s seizure
JPMorgan Chase & Co. agreed to acquire First Republic Bank in a government-led deal for the failed lender, putting to rest one of the biggest troubled banks remaining after turmoil engulfed the industry in March.
The transaction, announced in the early morning hours Monday after First Republic was seized by regulators, makes the biggest US bank even larger while minimizing the damage to the Federal Deposit Insurance Corp.’s guarantee fund. JPMorgan agreed to the takeover after private rescue efforts failed to fill a hole in the troubled lender’s balance sheet and customers yanked their deposits.