First Republic Bank Seized by Regulators and Sold . . .

Commenter Fred Dobbs reports (NYT) on the seizure of First Republic Bank by banking regulators in the comments section of Angry Bear. I am beginning to wonder how many more seizures will occur. How many failures are resulting from the loosening of Dodd-Frank? It appears the Fed has a greater impact on banks than Labor.

JP Morgan Chase to the rescue . . .

Earlier Angry Bear commentary on Dodd – Frank here and here.

Fred Dobbs comment; First Republic Bank Is Seized by Regulators and Sold to JPMorgan Chase – The New York Times, Maureen Farrell, Lauren Hirsch and Jeanna Smialek

Regulators seized control of First Republic Bank and sold it to JPMorgan Chase on Monday, a dramatic move aimed at curbing a two-month banking crisis that has rattled the financial system.

First Republic, whose assets were battered by the rise in interest rates, had struggled to stay alive after two other lenders collapsed last month, spooking depositors and investors.

First Republic was taken over by the Federal Deposit Insurance Corporation and immediately sold to JPMorgan. The deal was announced hours before U.S. markets are set to open, and after a scramble by officials over the weekend.

Later on Monday, 84 First Republic branches in eight states will reopen as JPMorgan branches.

JPMorgan will “assume all of the deposits and substantially all of the assets of First Republic Bank,” the F.D.I.C. said in a statement. The regulator estimated that its insurance fund would have to pay out about $13 billion to cover First Republic’s losses. JPMorgan also said that the F.D.I.C. would provide it with $50 billion in financing . . .

Additional information: Fact Sheet: The Senate’s Bipartisan Dodd-Frank Rollback Bill, Center for American Progress, Gregg Gelzinis and Joe Valenti