The US Treasury is insisting the American banking system stays “sound and resilient” after First Republic Financial institution was closed by regulators on Monday within the second-largest financial institution failure in U.S. historical past.
First Republic Financial institution was seized by California regulators and bought to JPMorgan Chase, which can assume duty for all deposits and belongings. Depositors with First Republic Financial institution could have their accounts converted to JPMorgan Chase and may nonetheless entry their cash.
That is the third central financial institution failure of 2023, following the collapse of Silicon Valley Financial institution and Signature Financial institution.
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Jamie Dimon, chairman of JPMorgan Chase, mentioned in a press release: “Our authorities invited us and others to step up, and we did. Our monetary power, capabilities and enterprise mannequin allowed us to develop a bid to execute the transaction in a option to decrease prices to the Deposit Insurance coverage Fund.”
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