JPMorgan Chase & Co (JPM.N) has come to the rescue of First Republic Bank (FRC.N), which had been seized by US regulators, by acquiring most of its assets, becoming the third major US bank to fail in the last two months. First Republic had reported a more than $100 billion drop in deposits in the first quarter, leading to a sell-off in its shares.
The banking sector is currently facing its biggest crisis since 2008, with fears of contagion and the need for intervention from the US Federal Reserve, Treasury, and private sector, following the collapse of two US lenders in March.