the first republic bank frc saga is winding to a close with the federal deposit insurance corporation confirming the shuttering of the bank and the sale of its assets to jpmorgan chase  co jpm what happened san franciscobased first republic was closed on monday by the california department of financial protection and innovation with the fdic appointed as receiver a statement released by the federal regulator said fdic said it is entering into a purchase and assumption agreement with jpmorgan chase bank to assume all the deposits and substantially all of the assets of first republic this is done in a bid to protect the depositors it added as part of the deal first republics 84 offices in eight states will reopen as branches of jpmorgan chase bank on monday during normal businsess hours all depositors of the regional bank will henceforth be depositors of its bigger peer as of april 13 2023 first republic had 2291 billion in total assets and 1030 billion in deposits fdic and jpmorgan also entered into a lossshare transaction on singlefamily residential and commercial loans it purchased from first republic this provides for both sharing losses and potential recoveries on the loans covered by the agreement the sale to jpmorgan involved a highly competitive bidding process and resulted in a transaction consistent with the leastcost requirement of the federal deposit insurance act the cost to the deposit insurance fund will likely be about 13 billion the release said why it’s important rumors of the development were floating around since friday the fdic was said to be in negotiations with several banks regarding a potential takeover with jpmorgan and pnc financial services group inc pnc projected as the frontrunners in the bidding battle see also best regional bank stocks at one point rumors suggested pnc could clinch the deal as big banks were constrained by the upper deposit ceiling monday’s resolution culminates monthandahalf survival efforts by first republic after the shuttering of the silicon valley bank and the signature bank lead to runins and flight of deposits this precipitated a liquidity crisis for the regional banks first republic attempted to put its house in order by tapping into its borrowing capacity from the federal reserve and suspending dividends on preferred shares in midmarch the bank also received 30 billion in uninsured deposits from 11 banks led by jpmorgan under a governmentbrokered deal the stock reflected the travails and traded at 351 at the close of trading on friday a far cry from the postcrisis levels of 115 it shed a whopping 51 to 172 in premarket trading on monday according to benzinga pro data read next ‘first republic vs everything else’ jim cramer defends his favorite bank as stock tumbles 21 post q1 print