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Why did First Republic Bank fail?

A passerby in San Francisco stops on Monday to read a posted announcement from the FDIC about the seizure of First Republic Bank and sale to JPMorgan Chase.
A passerby in San Francisco stops on Monday to read a posted announcement from the FDIC about the seizure of First Republic Bank and sale to JPMorgan Chase.

First Republic Bankbecame the second largest bank failure in history Monday when regulators seized it and sold its assets to JPMorgan Chase. Like Silicon Valley Bank, which was seized by the government in March, First Republic catered to a wealthy clientele, which helped it grow deposits rapidly but may have also contributed to its undoing.

Meanwhile, the White House is working overtime to reassure Americansas the standoff over the debt limit with House Republicans continues.

In a letter to House and Senate leaders on Monday,TreasurySecretary Janet Yellennotified Congressthat the U.S. could default on its debt as early as June 1. 

Jenn White talks to Alice Fulwood, Wall Street correspondent for The Economist and co-host of the podcast Money Talks, about what’s next.

Copyright 2023 WAMU 88.5

Maya Garg

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