On May 1, 2023, the California Department of Financial Protection and Innovation (DFPI) seized First Republic Bank, placing it into Federal Deposit Insurance Corporation (FDIC) receivership. According to reports, this move came after the bank’s financial troubles made it insolvent and unable to meet its obligations. Following the seizure, JPMorgan Chase submitted the winning bid to assume control of First Republic Bank’s deposits, including uninsured deposits.

From the first week of March, four major banks — Silvergate Bank, Silicon Valley Bank, Signature Bank, and First Republic Bank — have failed. The failures of the latter three banks are said to be the largest in American history, since the collapse of Washington Mutual (Wamu) in 2008.

Last week, all eyes were on First Republic Bank as it made a last-ditch effort to receive assistance from the private sector. This came after customers withdrew $100 billion from the bank last month, which led to concerns over the bank’s solvency. On Monday, May 1, the California Department of Financial Protection and Innovation (DFPI) announced that it had seized First Republic Bank and placed it under the control of the Federal Deposit Insurance Corporation (FDIC).

(by Jamie Redman)