JPMorgan Chase has won the auction to take over fallen First Republic Bank, the Federal Deposit Insurance Corp. announced early Monday morning.
The deal will see America’s largest bank
JPM,
assume all the deposits and “substantially all the assets” of First Republic
FRC,
The deal will see First Republic depositors — which include 11 leading banks that made $30 billion in a show of confidence — with full access to their deposits. All 84 First Republic offices will reopen as JPMorgan Chase later on Monday, the government said.
As of April 13, First Republic Bank had approximately $229.1 billion in total assets and $103.9 billion in total deposits.
The FDIC will enter a loss-sharing agreement with JPMorgan on single family, residential and commercial loans, in which they’ll share in the losses and potential recoveries on the loans.
The FDIC estimates that the cost to the Deposit Insurance Fund will be about $13 billion.
U..S. stock futures
ES00,
NQ00,
were steady after the deal was announced.
