FDIC Seizes First Republic Bank then sells it to JPMorgan Chase

The FDIC has seized First Republic (FRC), and agreed to sell the bank to JPMorgan Chase & Co (JPM).

JPMorgan Chase has just struck a deal to acquire the bulk of operations from First Republic Bank. This is massive news as First Republic Bank is the second-largest bank failure in United States history, behind Washington Mutual.

This is also interesting because, in 1994, Congress adopted a policy that bars a bank from buying another bank if the combined entity would hold more than 10% of the country’s deposits. JPMorgan bypassed this law to acquire First Republic.

JPMorgan currently holds 16.1% of the total deposits in the United States.

Jamie Dimon is somewhere in a dark room rubbing his hands plotting world domination…

JPMorgan said it will assume First Republic’s $92 billion in deposits - insured and uninsured, $173 billion in loans, and $30 billion in securities.

2023 has been wild to say the last. It seems as if every month there’s a new bank fighting for its life.

This current banking crisis has led to the failure of three U.S. banks in recent weeks. And these aren’t small, local banks by any means. In fact, it’s the opposite. These three bank failures in 2023 mark three of the four largest bank failures in U.S. history:

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