The collapse of First Republic Bank left it under control of the U.S. government, which quickly sold the bank to JPMorgan Chase. Is the rescue a bailout?
JPMorgan Chase, the nation's largest bank, retained the majority of First Republic's assets and all of its deposits, JPMorgan Chaseon Monday. In turn, the deal fully protects depositors at First Republic, who immediately became customers of JPMorgan Chase.
"Regulators have taken action to facilitate the sale of First Republic Bank and ensure that all depositors are protected and the taxpayers are not on the hook," Biden said.Here's what to know about the rescue of First Republic and whether it's a bailout:into financial turmoil because it specialized in long-term mortgage loans to affluent clients.
JPMorgan Chase on Monday agreed to acquire all of the bank's $103.9 billion in deposits as well as the majority of its $229.1 billion in assets, according to theAs part of the deal, the FDIC provided $50 billion in financing to JPMorgan Chase, the bank said on Monday. Ultimately, the final cost to the FDIC will be approximately $13 billion, the agency said.
"This seems to be more that guaranteeing deposits, and then it becomes something that I would consider a bailout," Admati told ABC News. JPMorgan Chase said the government chose it as a buyer because the bank's bid gave the FDIC more favorable terms than rival offers.
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