JPMorgan agreed to seize $173 billion in assets, $30 billion in securities, and all $92 billion of First Republic Bank’s deposits. In exchange, the FDIC agreed to share some of First Republic’s losses on its residential and commercial loans, thereby giving JPMorgan Chase some protection when it comes to assets going bad.

The largest U.S. bank, JPMorgan Chase fought off the likes of Bank of America and PNC Financial Services Group to win the auction for First Republic Bank’s assets.

Data from the FDIC suggests that the failure of First Republic Bank will cost an estimated $13 billion. This is in addition to the $22 billion losses incurred from the failure of Silicon Valley Bank and Signature Bank in March.

The post JPMorgan Acquires Bulk of First Republic Bank Assets in Largest Banking Failure Since 2008 appeared first on theprimarymarket.com.

Among those in the running are JPMorgan Chase and Bank of America, two of the largest U.S. banks, as well as Citizens Financial Group Inc and PNC Financial Services Group. Given until Friday to submit non-binding bids, the winner of the auction is expected to be announced late on Sunday along with the details of the sale. U.S. regulators are expected to seize the struggling bank around the same time that the announcement is made.

First Republic Bank landed itself in financial trouble last month, after which it decided to pursue a loan deal without any government assistance. This approach proved fruitless, with the auction process for the bank commencing last week.

The post First Republic Auction Gets Underway appeared first on theprimarymarket.com.

Unlike several other mid-sized banks like Signature Bank and Silicon Valley Bank, First Republic managed to avoid collapse at the height of the banking crisis in March. It received assistance from big banks at the time, but this proved insufficient.

In the first-quarter earnings report shared on Monday, First Republic revealed disappointing numbers that included a deposit outflow of $100 billion. The bank’s stock lost 50% of its value in the aftermath and continued to fall as the week went by.

The government and First Republic advisors have discussed a number of potential rescue plans in recent days, including the creation of a “bad bank” and selling assets. However, none of those options seem to be viable, and the bank will enter the FDIC receivership.

“We are engaged in discussions with multiple parties about our strategic options while continuing to serve our clients,” First Republic said in a statement provided to CNBC when reached out for a comment.

First Republic shares closed at $3.51 on Friday, down 43.30% compared to the day prior and 97.11% down year to date. The stock continued its fall in after-hours trading, dropping additional 41.03%

The post FDIC Set to Take Over First Republic After Rescue Attempts Fail appeared first on theprimarymarket.com.

JPMorgan agreed to seize $173 billion in assets, $30 billion in securities, and all $92 billion of First Republic Bank’s deposits. In exchange, the FDIC agreed to share some of First Republic’s losses on its residential and commercial loans, thereby giving JPMorgan Chase some protection when it comes to assets going bad.

The largest U.S. bank, JPMorgan Chase fought off the likes of Bank of America and PNC Financial Services Group to win the auction for First Republic Bank’s assets.

Data from the FDIC suggests that the failure of First Republic Bank will cost an estimated $13 billion. This is in addition to the $22 billion losses incurred from the failure of Silicon Valley Bank and Signature Bank in March.

The post JPMorgan Acquires Bulk of First Republic Bank Assets in Largest Banking Failure Since 2008 appeared first on theprimarymarket.com.

Among those in the running are JPMorgan Chase and Bank of America, two of the largest U.S. banks, as well as Citizens Financial Group Inc and PNC Financial Services Group. Given until Friday to submit non-binding bids, the winner of the auction is expected to be announced late on Sunday along with the details of the sale. U.S. regulators are expected to seize the struggling bank around the same time that the announcement is made.

First Republic Bank landed itself in financial trouble last month, after which it decided to pursue a loan deal without any government assistance. This approach proved fruitless, with the auction process for the bank commencing last week.

The post First Republic Auction Gets Underway appeared first on theprimarymarket.com.

Unlike several other mid-sized banks like Signature Bank and Silicon Valley Bank, First Republic managed to avoid collapse at the height of the banking crisis in March. It received assistance from big banks at the time, but this proved insufficient.

In the first-quarter earnings report shared on Monday, First Republic revealed disappointing numbers that included a deposit outflow of $100 billion. The bank’s stock lost 50% of its value in the aftermath and continued to fall as the week went by.

The government and First Republic advisors have discussed a number of potential rescue plans in recent days, including the creation of a “bad bank” and selling assets. However, none of those options seem to be viable, and the bank will enter the FDIC receivership.

“We are engaged in discussions with multiple parties about our strategic options while continuing to serve our clients,” First Republic said in a statement provided to CNBC when reached out for a comment.

First Republic shares closed at $3.51 on Friday, down 43.30% compared to the day prior and 97.11% down year to date. The stock continued its fall in after-hours trading, dropping additional 41.03%

The post FDIC Set to Take Over First Republic After Rescue Attempts Fail appeared first on theprimarymarket.com.