JPMorgan Takes Over First Republic Bank Amid Regulatory Crisis

First Republic, a California-based specialty lender, has been seized by the Californian financial regulator, resulting in JPMorgan Chase Bank assuming all deposits and "substantially all assets" of the bank. This is the third failure of an American bank since March. First Republic's deposit drain forced it to borrow heavily from Federal Reserve facilities to maintain operations, which pressured the company's margins because its cost of funding is far higher now. The bank's advisors had hoped to persuade the biggest U.S. banks to help First Republic once again, but ultimately the banks couldn't agree on the rescue plan and regulators took action, ending the bank's 38-year run.