Banking crisis? US bank saved from imminent bankruptcy

Sacramento - It is reminiscent of the financial crisis from 2007: First Republic Bank from the USA has stumbled. Now it is being taken over by the financial group JP Morgan Chase.

First Republic Bank is in trouble.
First Republic Bank is in trouble.  © Steven Senne/AP

Initially, the US deposit insurer FDIC will become the trustee of the institution, as the Californian financial regulator DFPI announced on Monday.

In the next step, JP Morgan will take over First Republic with all deposits and practically all assets.

Shares in First Republic Bank were temporarily suspended from trading on Friday after they fell by more than 50 percent to a record low.

The bank has been struggling since the collapse of Silicon Valley Bank and Signature Bank, with many customers withdrawing their money .

The background to the problems was a sudden rise in key interest rates.

The situation remained precarious despite a bailout by the largest US financial institutions in coordination with the Treasury Department and the Federal Reserve.