U.S. banking industry is facing another setback as First Republic Bank has been closed by the California Department of Financial Protection and Innovation (DFPI) and its assets are being sold to JPMorgan Chase & Co and National Association. This marks the third major bank failure in the country in just two months, following the closure of Silicon Valley Bank and Signature Bank. The move is a result of a deposit flight from U.S. lenders, which has forced the Federal Reserve to take emergency measures to stabilize markets.
JPMorgan was one of several potential buyers, including PNC Financial Services Group and Citizens Financial Group, who submitted final bids in an auction run by U.S. regulators over the weekend. With First Republic Bank having total assets of $229.1 billion as of April 13, the sale marks a significant development in the U.S. banking sector.
