The Risk of Regional Bank Failures in the US

JPMorgan Chase has acquired most of the assets of First Republic Bank, which was seized by the federal government, making it the second-largest bank failure in US history. First Republic's failure follows the collapse of Silicon Valley Bank and Signature Bank in March, leading to concerns of a slow-motion banking crisis. Rising interest rates have caused mid-sized banks to suffer major unrealized losses, leading to depositors withdrawing their funds and taking them to larger institutions. While regulators have acted to prevent a chain reaction at other banks, there is a real possibility of further failures among mid-sized banks with similar vulnerabilities.