after its bankruptcy, First Republic is acquired by JPMorgan

New bank rescue operation in the United States. The American authorities took control of the First Republic bank on Monday, May 1 and sold the vast majority of it to JPMorgan Chase. This is the second largest bank failure in the history of the United States (excluding investment banks like Lehman Brothers) after that of Washington Mutual in September 2008.

With this operation, the American authorities hope close the episode of banking crisis that emerged in March. First Republic was under severe pressure since the close failures last month of two establishments with a similar profile, Silicon Valley Bank and Signature. But the bank failed to come up with a satisfactory rescue plan. When it confirmed last Monday that many clients withdrew more than $100 billion in deposits in the first quarter, its already struggling stock took a nose dive.

The authorities, who seemed reluctant to come to the rescue of a third bank in a short time, finally stepped up, soliciting offers from financial institutions before officially seizing First Republic. The authorities and other major banks intervened in March to prevent First Republic from experiencing the same fate as SVB and Signature, with eleven financial institutions agreeing to deposit a total of 30 billion dollars there. But that was not enough to reassure.