Regulators seized First Republic Bank ( FRC.N ) and sold her assets to J.P. Morgan Chase & Co ( JPM.N ) on Monday, in a deal to resolve the biggest U.S. bank failure since the 2008 financial crisis.
First Republic Bank was among the regional U.S. lenders hardest hit by a crisis of confidence in the banking sector in March, when depositors fled in droves from smaller banks to giants such as J.P. Morgan as they panicked over the collapse of two other mid-sized major US banks. Since then, First Republic has limped along and its customers have fled, revealing last week that it had seen outflows of more than $100 billion in the first quarter.
On Monday, California regulators seized First Republic and placed it under FDIC receivership along with the sale of its assets. The Banking giant will aquire $ 173 billions on for a $ 30 billions of securities on First Republic Bank.
J.R. Morgan was one of a number of prominent buyers, including PNS Financial Services Group and Citizens Financial Group Inc., to present closing awards on the 30th of April, during a campaign led by US prosecutors, according to sources cited by Reuters.