First Republic Becomes Second-Largest Ever US Bank Failure
- Lender supplants Silicon Valley Bank after regulator seizure
- Three of largest FDIC failures this century occurred in weeks
For just over one month, Silicon Valley Bank was the second-largest bank failure in US history. That was until First Republic Bank, a California lender that catered to wealthy clients, knocked it off that spot.
First Republic was seized by the Federal Deposit Insurance Corp. early on Monday after failing to undo the damage from a flood of customer withdrawals and declining asset prices. The US regulator struck an agreement for JPMorgan Chase & Co. to take over the bank’s assets including $173 billion of loans and $30 billion of securities, as well as $92 billion in deposits, after talks to rescue the lender dragged on for weeks.