JPMorgan Chase said on Monday it will buy most of First Republic Bank's assets after regulators seized the troubled lender over the weekend, marking the third failure of a major U.S. bank in two months.
Under the deal, which came after an auction, JPMorgan will pay $10.6 billion to the U.S. Federal Deposit Insurance Corporation (FDIC) for most of the assets of the San Francisco-based bank, whose failure is the largest since Washington Mutual in 2008.
JPMorgan, already the biggest bank in the United States, has also entered into a loss-share agreement with the FDIC on single family, residential and commercial loans it bought, but will not take First Republic Bank's corporate debt or preferred stock.