The US economic crisis is leading to the failure of banks. Subsequently, the two largest banks in the United States were declared insolvent. Other institutions were reportedly in crisis as well. The Third Republic Bank, the third largest bank in the United States, has filed for bankruptcy after Silicon Valley Bank and Signature Bank, which provided credit and other financial services to start-up companies in the United States, filed for bankruptcy in March of last year.
First Republic Bank was seized on Monday, making this the third largest American bank to fail in the past two months. The US government has also announced that it has signed an agreement with JPMorgan Chase & Co. to acquire the bank.
After Silicon Valley Bank and Signature Bank, which provided credit and financial services to US start-ups
The San Francisco-headquartered Burst Republic Bank was declared insolvent. Burst Republic Bank, founded in 1985 and headquartered in San Francisco, is the largest bank in the United States. New York city, The bank has 84 branches in eight offshore provinces, including California and San Francisco.
According to the US Federal Organization, 84 branches of Burst Republic Bank in the eight American states operate under the name JPMorgan Chase Bank. JPMorgan announced in a statement that its company will acquire the bank’s $30 billion in bonds, as well as its $173 billion in debt and $92 billion in deposits. During pre-market trading, shares of First Republic Bank fell by 36%. The value of shares fell 97 percent this year.
Earlier, in March of last year, the Federal Reserve was compelled to take immediate action to stabilize markets in response to the failure of Silicon Valley Bank and Signature Bank. Since 2021, JPMorgan has been involved in the procurement, with over 30 companies acquiring contracts worth over $5 billion.
With the acquisition of Purse Rimic Bank, JPMorgan, the largest bank in the United States, has now become the largest bank in the world. As a result of the failures of SVB and Signature Bank, Burst Republic Bank was also in crisis. The bank failed because wealthy clients began withdrawing their deposits.