“This is the last stages of that initial panic. First Republic’s problems started as a result of SVB and Signature.”
Senior researcher at the Yale Program on Financial Stability, Steven Kelly. The collapse of First Republic Bank is the second-biggest baking failure in U.S. history.
may 1, 2023
What To Know: First Republic Bank is San Francisco-based bank, operating in eight states with 84 branches. The bank found itself sucked into the swirling quicksand of recent bank collapses, caused *in part* by worried customers moving their money out of the bank and a changing interest rate environment.
Why It Matters: As of Monday morning, the federal government seized First Republic Bank and sold most of its assets to the largest bank in the country, JPMorgan Chase. It is the second-biggest baking failure in U.S. history (topping the Silicon Valley Bank collapse in March) and “the third midsize bank to fail in less than two months” (The Associated Press).
Something To Consider: When Silicon Valley Bank (SVB) collapsed, one CEO of an investment company said, "I think this could be the first cockroach in the cellar." Fast-forward a few weeks and experts are evaluating how much of the most recent bank collapse is connected to SVB or part of a larger unstable economic state.
First Republic Bank Is Seized, Sold to JPMorgan in Second-Largest U.S. Bank Failure (The Wall Street Journal)
