JP Morgan to buy failed First Republic Bank
STORY: Wall Street giant JP Morgan has agreed to buy First Republic Bank's assets and take on its deposits, as the smaller bank faces collapse.
It's the third large American financial institution to fail in two months.
JP Morgan reached the deal in an auction with government regulators who have seized First Republic in the meantime - the California state government announced Monday it had seized the bank with the FDIC acting as its receiver.
JP Morgan says it will take $173 billion in loans from First Republic and $30 billion in securities, but said in a statement that it will not take on First Republic's corporate debt or its preferred stock.
Its stock has lost 97% of its value this year.
JP Morgan is the country's largest lender and CEO Jamie Dimon played a central role in securing $30 billion earlier this year, with other banks, to inject into First Republic - part of an effort to keep it afloat.
The company has also been on a buying spree, acquiring over 30 companies in the last two years.