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| Version 2 | Version 3 |
|---|---|
| First Republic: JP Morgan to take over major US bank | First Republic: JP Morgan to take over major US bank |
| (32 minutes later) | |
| JP Morgan is set to take over the troubled US bank First Republic in a deal brokered by regulators. | JP Morgan is set to take over the troubled US bank First Republic in a deal brokered by regulators. |
| The Federal Deposit Insurance Corporation (FDIC) confirmed in a statement that First Republic had collapsed on Monday. | The Federal Deposit Insurance Corporation (FDIC) confirmed in a statement that First Republic had collapsed on Monday. |
| Investment banking giant JP Morgan will now take on "all of the deposits and substantially all of the assets of First Republic Bank". | Investment banking giant JP Morgan will now take on "all of the deposits and substantially all of the assets of First Republic Bank". |
| First Republic becomes the third major US bank to collapse in recent months. | First Republic becomes the third major US bank to collapse in recent months. |
| The San Francisco-based lender's shares fell by more than 75% last week after it admitted that customers had withdrawn $100bn (£79.6bn) of deposits in March. | The San Francisco-based lender's shares fell by more than 75% last week after it admitted that customers had withdrawn $100bn (£79.6bn) of deposits in March. |
| It follows on from the collapse of Silicon Valley Bank (SVB) in March, which prompted fears of a wider banking crisis. | It follows on from the collapse of Silicon Valley Bank (SVB) in March, which prompted fears of a wider banking crisis. |
| That was swiftly followed by the demise of another US lender, Signature Bank. | That was swiftly followed by the demise of another US lender, Signature Bank. |
| A deposit flight from lenders has forced the Federal Reserve, the US central bank, to step in with emergency measures to stabilise financial markets. | A deposit flight from lenders has forced the Federal Reserve, the US central bank, to step in with emergency measures to stabilise financial markets. |
| In March, a group of America's biggest banks stepped forward to pump $30bn into First Republic in a bid to stabilise the business, but the efforts proved futile. | |
| Founded in 1985, First Republic is a mid-sized US lender, similar to SVB. | |
| For years, it has catered to wealthy clients - whose money was at risk before the takeover was announced after a weekend of negotiations. | |
| US bank makes last ditch bid to find rescuer | |
| Future of US bank in doubt as investors flee | |
| In the US, FDIC insures customer deposits up to $250,000. | In the US, FDIC insures customer deposits up to $250,000. |
| When Silicon Valley Bank and Signature collapsed, the FDIC said it would guarantee all deposits to prevent a rush of people trying to get their money out, which is known as a run on a bank. | When Silicon Valley Bank and Signature collapsed, the FDIC said it would guarantee all deposits to prevent a rush of people trying to get their money out, which is known as a run on a bank. |
| As part of the First Republic agreement, it will share losses on loans with the JP Morgan. The FDIC has estimated that its insurance fund would take a hit of about $13bn in the deal. | |
| First Republic's 84 offices across eight states will also reopen as branches of JPMorgan Chase. | |
| In Europe, banking giant Credit Suisse was bought by rival UBS in March, in a deal orchestrated by Swiss authorities. | In Europe, banking giant Credit Suisse was bought by rival UBS in March, in a deal orchestrated by Swiss authorities. |
| As central banks around the world raised interest rates aggressively to dampen the rate of price rises, otherwise known as inflation, some lenders have come under pressure. | As central banks around the world raised interest rates aggressively to dampen the rate of price rises, otherwise known as inflation, some lenders have come under pressure. |
| Increased interest rates have hurt the values of the large portfolios of bonds bought by banks when rates were lower. | Increased interest rates have hurt the values of the large portfolios of bonds bought by banks when rates were lower. |
| Related Topics | Related Topics |
| Companies | Companies |
| Banking | Banking |
| Credit Suisse | Credit Suisse |