The bailout of US regional bank First Republic, which authorities announced this Monday, “will help stabilize the system,” said JPMorgan executive chairman (CEO) Jamie Dimon.
Although the failures of two other banks in March rocked the financial world and threw the First Republic into disarray, “the American banking system is unusually sound,” he also said in a conference call with reporters, quoted by AFP.
The US federal agency announced on Monday that JPMorgan Chase Bank will take over all deposits and most of First Republic Bank’s assets.
In a statement released Monday, the Federal Deposit Insurance Corporation (FDIC) said California regulators had closed First Republic Bank and that JPMorgan Chase was taking over “all deposits and substantially all assets” of the bank.
Thus, 84 First Republic Bank branches in eight states will reopen this Monday as branches of JPMorgan Chase Bank.
San Francisco-based First Republic is struggling after the collapse of Silicon Valley Bank and Signature Bank in March.
Regulators spent the weekend trying to find a solution ahead of the US stock exchanges opening, according to the Associated Press (AP) news agency.
Last Friday, First Republic shares closed at $3.51, up from about $170 a year ago.
Author: Portuguese
Source: CM Jornal
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