2023-05-20 11:17:46
Fifty-two days following the collapse of the Silicon Valley Bank SVB that rocked the US financial system, regulators have taken control First Republic Bank Monday, May 1, before selling its assets to JPMorgan Chase.
First Republic was among the US regional banks hardest hit by a loss of confidence in the banking sector, as customers panicked following the collapse of SVB and Signature Bank, two medium-sized lenders, in March.
Although some of the nation’s largest banks banded together to help First Republic in mid-March by placing $30 billion in unsecured deposits with the distressed lender, customers fled in droves, withdrawing nearly $100 billion in deposits in March alone, the bank revealed in its report.
First quarter earnings report last week. Excluding $30 billion in term deposits from the bailout attempt, First Republic ended the month with total deposits of $74.4 billion, down from $173.5 billion on March 9, the day before the SVB failed.
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