Regional Bank Shares Take Beating After First Republic Collapses
U.S. regional bank shares took a beating after the collapse of First Republic and its takeover by JP Morgan Chase & Co.
The Federal Deposit Insurance Corporation (FDIC) seized First Republic Bank in the second-largest bank failure in American history in what is also the third regional bank to fail this year.
Shares of several regional lenders tumbled on May 1, after JPMorgan’s announced acquisition of First Republic Bank, amid the worst crisis to hit the U.S. banking industry since 2008.
The crisis was triggered by the closure of Silicon Valley Bank and Signature Bank in March, which led to the mass withdrawal of deposits from smaller lenders, fueling fears of a liquidity crisis that could threaten the entire economy….