JPMorgan said it will assume all of First Republic’s $92b in deposits—insured and uninsured. It is also buying most of the bank’s assets, including about $173b in loans and $30b in securities. As part of the agreement, the FDIC will share losses with JPMorgan on First Republic’s loans. The agency estimated that its insurance fund would take a hit of $13b in the deal. JPMorgan also said it would receive $50b in financing from the FDIC.
“This is the last stages of that initial panic. First Republic’s problems started as a result of SVB and Signature,” said Steven Kelly, a senior researcher at the Yale Program on Financial Stability. “This isn’t the story of 2008, where one bank went down and investors focused on the next biggest bank, which would wobble.”