Third Bank Falls in Less than Two Months
By Carmen Martinez
On Monday May 1st, First Republic Bank became the third major bank in the U.S to close its doors. Revealing that they had lost 100 billion dollars in deposits within the first quarter
The bank was closed by the California Department of Financial Protection and Innovation and the Federal Deposit Insurance Corporation was appointed receiver. Most of the banks assets were quickly bought by JPMorgan Chase. Which is currently the largest bank in America. The FDIC expects to take a 13 billion loss to its deposit insurance fund in order to share some of the losses such as First Republic's portfolio of residential mortgages and commercial loans.
Financial regulators are working to prevent future bank failures through several different methods such as monitoring higher borrowing costs.