By: ATuL
Artist Story
After Washington Mutual, which fell during the 2008 financial crisis and was also bought by JP Morgan, First Republic is the second-largest US bank by assets.
The assets of First Republic, a 1985-founded bank ranked 14th in the US, were impacted by rising interest rates earlier this year.
84 First Republic locations in eight states reopened as JPMorgan locations on Monday.
ATuL
The purchase of JPMorgan was well received by investors, causing the bank's stock to rise 3.5 percent on Monday.
First Republic's losses would need to be covered by almost $13 billion.
The two regional banks that fell short in First Republic's bids both experienced declines of over 5%.
JP Morgan also stated that it will receive $50 billion of funding from the FDIC.
Despite receiving a $30 billion lifeline from the country's 11 largest banks in March, First Republic failed.
First Republic folded under the weight of loans and investments, much like the other two failing banks, Silicon Valley Bank and Signature.
On Monday, authorities took over First Republic Bank and sold it to JPMorgan Chase.