It’s a new week and that means there will be 20 different propaganda talking points as to why the American system isn’t failing. But over the weekend, yet another major US bank has fallen amid struggles with uninsured deposits and lots of them. Federal regulators in California made the announcement over the weekend with JP Morgan Chase set to scoop up the bank after weekend negotiations and talks.
As multiple reports have reiterated this is the third major bank to collapse in 2 months in the United States. The bank is understood to have lost more than $100b in deposits in the first quarter of the year alone.
JP Morgan will assume all assets and deposits effective today. First Republic branches across 8 states are set to begin operating as Chase Bank and will open as such beginning today.
‘To protect depositors, the FDIC is entering into a purchase and assumption agreement with JPMorgan Chase Bank, National Association, Columbus, Ohio, to assume all of the deposits and substantially all of the assets of First Republic Bank,’ the Federal Deposit Insurance Corporation said in a statement.