Headline RoundupMay 1st, 2023

First Republic Bank Seized by Government, Sold to JPMorgan

Summary from the AllSides News Team

JPMorgan Chase has purchased First Republic Bank after it was seized by the federal government.

The Details: JPMorgan Chase has assumed "all deposits, including all uninsured deposits, and substantially all assets of First Republic Bank," and its 84 branches will reopen Monday as part of JPMorgan Chase. The bank acquired First Republic from the Federal Deposit Insurance Corporation, the independent government agency that insures deposits for banks, which had seized First Republic after its stock plunged roughly 97% over the last six weeks. 

Key Quotes: The government said it seized First Republic Bank because it was "conducting its business in an unsafe or unsound manner." 

For Context: First Republic Bank is based in San Francisco, and had total assets worth approximately $229.1 billion and total deposits of approximately $103.9 billion. The collapse follows Silicon Valley Bank and Signature Bank failing earlier this year. The cause was similar, as panicked depositors and investors withdrew their money en masse. All three are now among the four biggest bank failures in U.S. history, trailing only Washington Mutual in 2008. 

How the Media Covered It: Sources across the spectrum highlighted the news prominently Monday. Most suggested the failure wouldn't spark further panic in the banking sector.

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