JP Morgan will acquire the majority of First Republic’s assets and all deposits.
On April 25, PacWest Bancorp revealed its Q1 2023 financial results.
In the year 2023, banking has become very difficult. It all started with the failure of many major financial institutions, including Silvergate Bank, Signature Bank, and Silicon Valley Bank. The US government seized First Republic Bank earlier this week, and trading in the bank’s shares was temporarily stopped.
The First Republic Bank failure was the third large US bank to go down in under two months. After the California Department of Financial Protection and Innovation took control of the failing bank, it was sold to JP Morgan Chase & Co.
According to a statement released by California authorities, JP Morgan will acquire the majority of First Republic’s assets and all deposits, including those that are not insured.
Major Banks Trading in Red
Today, shares of PacWest Bancorp fell by 27%, similar to other banks. As a result, trading in PACW shares was suspended due to market volatility. At this moment, PACW is selling for $6.34. This follows the recent acquisition of First Republic Bank by JPMorgan Chase.
On April 25, PacWest Bancorp revealed its Q1 2023 financial results. According to the data, the company lost billions of dollars in the first quarter. The recent suspension of stock trading was likely caused by a precipitous increase in selloffs. This is likely attributable to the recent spate of bank failures.
The decline in stock price was not limited to PacWest Bancorp. The share price of Western Alliance Bancorp fell 21% today, as well. Investors’ faith in the banking sector has been shaken by the recent failure of many well-known financial institutions. Amid the crisis, the crypto sector has bounced back with Bitcoin up 2% in the last 24 hours and is now trading at $28,670.