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IPFS News Link • Central Banks/Banking

Another One Down? First Republic Bank FAILS, FDIC Sells It to JP Morgan

• by Daisy Luther

And today may be the day that it does unless there's a dramatic last-minute save. If it does fail, it will be the second-largest bank failure in American history.

UPDATE: First Republic has failed. The FDIC has taken control of the deposits and sold the bank to JP Morgan. As per Zero Hedge:

In the end, early on Monday morning, the US unveiled a hybrid solution – after all other attempts at a private rescue effort failed – one where the FDIC would seize the insolvent First Republic, the 14th largest US bank by assets, making it the second biggest bank failure in US history, and immediately sell the bulk of its assets and all of its deposits to JPMorgan after a sham but "highly competitive bidding process" had taken place over the weekend (one in which virtually nobody wanted to participate as nobody would buy FRC without explicit government backstops, which in the end is precisely what they ended up getting on FRC's IO and CRE loan portfolio) while keeping FRC's toxic Interest-only mortgages to Hamptons' billionaires.

According to the FDIC announcement, JPMorgan would assume all of First Republic's $92 billion in deposits — insured and uninsured, including the $5 billion in deposits gived by JPM to First Republic on March 16. It is also buying most of the bank's assets, including about $173 billion in loans and $30 billion in securities.

And the rich get richer.