The US banking system is known for its stability and is rightfully considered one of the strongest in the world. It does go through crises from time to time but always proves its remarkable resilience. The recent almost simultaneous closure of several regional US banks is another proof of that. In most countries, such a failure in the banking sector would cause a serious collapse in the financial system. Yet, it seems that the US is doing just fine. In an attempt to limit the damage, US financial authorities have launched emergency measures to support investors. The situation with First Republic Bank was another example of a prompt response to an emerging crisis. The lender was already struggling as depositors rushed to withdraw their funds in panic sparked by the meltdown of two other mid-sized US banks. So, regulators decided to intervene before another collapse happened and sold the assets of First Republic Bank to JPMorgan Chase. It was reported that the troubled bank was closed by the California Department of Financial Protection and Innovation (DFPI) which later appointed the Federal Deposit Insurance Corporation (FDIC) as a receiver of the bank’s deposits. Later, the FDIC approved the deal with JPMorgan Chase. According to the FDIC statement, First Republic Bank had $103.9 billion in deposits and $229.1 billion in assets as of April 13. From now on, FRB’s 84 offices in eight US states will reopen as branches of JPMorgan Chase. In late April, FRB stock tumbled at the opening of the trading session. Notably, First Republic Bank ranked as the nation’s 14th largest lender at the end of 2022.
