The Shut Down: First Republic Bank



The First Republic Bank logo mark is seen outside the bank branch in Manhattan on Monday, May 1, 2023. (Luiz C. Ribeiro/New York Daily News/Tribune News Service via Getty Images)

Montana Poe, Sports Editor

First Republic Bank was a commercial bank and provider of Wealth Management Services, headquartered in San Francisco, California. Millions of dollars were at risk after the fall of First Republic Bank, which was horrible for the people who had money in the bank. Officials announced on Monday that they closed San Francisco-based First Republic Bank, which makes it the third U.S. bank to collapse in the past two months. Most of First Republic’s assets are being acquired by JPMorgan. JPMorgan Chase & Co are the leaders in investment banking, financial services for consumers and small businesses, commercial banking, financial transactions processing, and asset management.

The First Republic had very wealthy clients who rarely defaulted on their loans. The First Republic Bank collapsed after depositors and investors abandoned the institution, pulling their money, and selling their shares. Its stock decreased 75 percent last week. It is unclear whether First Republic Bank is the final piece in the bank industry to fall in the recent banking crisis, but it is very likely. The troubled First Republic Bank was closed down by US regulators for all the uncertainty, but its assets are to be acquired by JPMorgan Chase.

First Republic is considered the most vulnerable regional bank after the banking crisis in March. Federal officials have been taking steps to make sure other banks aren’t impacted for the people because it would be an even bigger conflict. Aswath Damodaran, a finance professor said, “This is a trust issue, as it is for any bank, and when trust is lost, money will flee.” So when the trust is lost within a bank because of negligence the trouble rests within the company.