Third Major American Bank Collapses, Regulators Will Soon Take Company Over: Report

The Federal Deposit Insurance Corporation, also known as the FDIC, will imminently place First Republic Bank under receivership, marking the third collapse of a medium-sized American bank in less than two months.

First Republic Bank, headquartered in San Francisco, California, caters mainly to wealthy clients with account balances above the $250,000 deposit threshold backed by the FDIC. The company witnessed many customers withdraw their funds in recent weeks as the recent implosions of Silicon Valley Bank and Signature Bank rattled trust in the financial system. FDIC officials had moved to secure both insured and uninsured deposits at the two failed companies to decrease the risk of bank runs at other financial institutions.