Third Major Bank in the U.S. Files for Bankruptcy

The market value of one of the largest banks in the U.S., First Republic, has dropped to $557 million, compared to a peak of $40 billion in November 2021. According to Reuters, the bank's shares have decreased by nearly 50%. A record outflow of deposits, amounting to around $100 billion, has been observed, prompting regulators to urgently seek a new owner for the bank.

The report states that American regulators are attempting to finalize a deal for the sale of First Republic Bank, potentially involving JPMorgan Chase Bank. Approximately six banks, including Citizens Financial Group, PNC Financial Services Group, and JPMorgan Chase, have submitted bids to participate in the auction.

It is noted that lenders will participate in the auction for all deposits of First Republic Bank, a significant portion of its assets, and some liabilities. First Republic was among the twenty largest banks in the U.S. As of April 13, the bank, based in San Francisco, had total assets of $229 billion and deposits of $104 billion.