JACKSON, Wyo. — After being the second-largest bank by assets to fail in U.S. history and getting seized by the federal government, First Republic Bank has been sold to JPMorgan Chase as of May 1.
This sale reassures depositors that their money will be safe.
First Republic lost $102 billion in customer deposits last quarter and borrowed roughly $92 billion, a majority of the amount from lending groups and the Federal Reserve. A landslide of depositors and investors pulling money and selling shares ultimately led First Republic to fail, shortly after the collapse of Silicon Valley and Signature Banks.
JPMorgan Chase’s insurance fund will cover First Republic’s estimated $13 billion losses.
The Federal Deposit Insurance Corporation guarantees deposits up to $250,000 will be covered per depositor, per bank. People who have a joint account with someone else each get $250,000 in coverage, for a potential total of $500,000.
First Republic opened its door to the Jackson Hole community roughly four and a half years ago and was recently voted the Best Bank and Best Money Management Firm of Jackson Hole in the 2023 Best Of Jackson Hole. The Jackson, Wyoming, location is one of 84 First Republic branches that will reopen as JPMorgan Chase branches.
As of summer 2021, JPMorgan Chase opened its first bank in Jackson Hole, the second in the state.
