JP Morgan will take over a big US bank, according to First Republic.
In a deal mediated by authorities, JP Morgan will acquire the ailing US bank First Republic.
The Federal Deposit Insurance Corporation (FDIC) acknowledged the failure of First Republic on Monday in a statement.
JP Morgan will now acquire “all of the deposits and substantially all of the assets of First Republic Bank.”
First Republic is the third big US bank to fail in the last few months.
Last week, the San Francisco-based lender’s stock dropped more than 75% after it revealed that customers withdrawn $100 billion (£79.6 billion) in deposits in March.
It followed the March failure of Silicon Valley Bank (SVB), which sparked fears of a broader banking crisis.
Signature Bank, another US lender, went bankrupt shortly after.
Due to a deposit flight from US lenders, the Federal Reserve, the US central bank, has been compelled to intervene with emergency measures to stabilize financial markets.
A group of 11 US banks moved up in March to inject $30 billion into First Republic in an attempt to stabilize the business, but the efforts were ineffective.
First Republic, like SVB, is a mid-sized US lender that was founded in 1985. For years, it has enticed wealthy clientele, whose funds were at stake before the takeover was disclosed after a weekend of discussions.
The terms of JP Morgan’s acquisition of First Republic are not yet known.