California regulators seize troubled First Republic Bank

California regulators have seized the troubled First Republic Bank, with JPMorgan Chase taking over all deposits and most assets (Jeff Chiu/AP)

California regulators have seized the troubled First Republic Bank, with JPMorgan Chase taking over all deposits and most assets, the Federal Deposit Insurance Corp said on Monday.

The FDIC said the regulators have closed First Republic and appointed it as receiver.

JPMorgan Chase will assume “all of the deposits and substantially all of the assets of First Republic Bank”, it said in a statement.

To protect depositors, we entered into an agreement with JP Morgan Chase Bank to purchase and assume all deposits and assets of First Republic Bank. Read more ➡️ https://t.co/8KCKgJ2ZWR. pic.twitter.com/FRrIZk5aBY

— FDIC (@FDICgov) May 1, 2023

First Republic Bank’s 84 branches in eight states will reopen on Monday as branches of JPMorgan Chase Bank.

Regulators had been working to find a way forward before US stock markets opened on Monday.

San Francisco-based First Republic has struggled since the collapses of Silicon Valley Bank and Signature Bank in early March.

They added to worries that the bank may not survive as an independent entity for much longer.