Another Silicon Valley bank fails. The California Department of Financial Protection and Innovation (DFPI) took possession of San Francisco–based First Republic Bank, accusing the institution of conducting business "in an unsafe or unsound manner." It appointed as receiver the Federal Deposit Insurance Corporation (FDIC), which then sold the bank to JPMorgan Chase Bank.
JPMorgan Chase will "assume all deposits, including all uninsured deposits, and substantially all assets of First Republic Bank," per a press release from the California DFPI. As part of the sale deal, the FDIC "will share losses with JPMorgan on First Republic's loans," reports The Wall Street Journal. "The agency estimated that its insurance fund would take a hit of $13 billion in the deal. JPMorgan also said it would receive $50 billion in financing from the FDIC."
