JPMorgan Chase buys most of First Republic’s assets after its collapse in March

(CNN) – JPMorgan Chase will buy the majority of First Republic Bank’s assets in a deal announced Monday arranged by the Federal Deposit Insurance Corporation (FDIC), an independent government agency that insures customer deposits.

JPMorgan Chase said it acquired the vast majority of the assets and assumed deposits and other liabilities of First Republic Bank from the FDIC.

The Federal Deposit Insurance Corporation took control of the beleaguered lender on Sunday and then promptly announced the sale of many of its assets and deposits. This makes the First Republic the second largest banking collapse in US history.

The move marks the latest effort by federal regulators to boost consumer confidence in the banking system, which has now suffered three major bank failures in the past six weeks. The Silicon Valley bank and signature bank was acquired by the FDIC last month after running clients on those banks.

The collapse of those banks sparked weeks of speculation about the health of regional US banks, especially those with a largely uninsured deposit base.