First Republic Bank seized by federal regulators

(NBC, KYMA/KECY) - Another U.S. Bank has gone under. Federal regulators announced Monday that First Republic Bank has been seized, making it the third major bank to fail in 2023, and the largest lender to collapse since the 2008 financial crisis.

However, the Federal Deposit Insurance Corporation (FDIC) also announced Monday that a deal has been reached for J.P. Morgan Chase, the largest bank in America, to purchase a substantial portion of first republic's assets and deposits.

First Republic had just over $229 billion in total assets at the time of closure, following a 40% drop in deposits in the first quarter of this year.

Many customers opted to move their money to larger and safer banks following the collapse of Silicon Valley Bank and Signature Bank, which led to First Republic's stock falling more than 75% over the past 30 days, and ultimately, Monday's action by the FDIC.

Looking to reassure the public, the Treasury Department also released a statement, reading in part, "The banking system remains sound and resilient, and Americans should feel confident in the safety of their other deposits."

First Republic's 84 branches in eight states will reopen Monday as branches of J.P. Morgan Chase.