Troubled First Republic Bank seized by regulators, then sold to JP Morgan Chase
CBSN
Regulators seized control of First Republic Bank early Monday, making it the third financial institution taken under government control this year, then promptly accepted a bid from JP Morgan Chase for all of First Republic's assets, a California agency said.
The state's Department of Financial Protection and Innovation (DFPI) said it had taken over San Francisco-based First Republic and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. The DFPI said the FDIC then "accepted a bid from JPMorgan Chase Bank, National Association, Columbus, Ohio, to assume all deposits, including all uninsured deposits, and substantially all assets of First Republic Bank."
The DFPI said it acted under California law regarding a financial entity "conducting its business in an unsafe or unsound manner" and being in a "condition that … is unsafe or unsound" to transact banking business."
