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First Republic's failure follows closely on the heels of the collapse of Silicon Valley Bank, which sent shockwaves through the financial system. In a bid to ensure confidence and curb rising fears among depositors, major players in the banking sector collectively deposited $30 billion into First Republic. This move, however, proved inadequate in preventing the dire outcomes that would soon follow.
As of the latest news, JPMorgan acquired a significant portion of First Republic's assets at a staggering price of $10.6 billion, a payout more than 15 times its market capitalization. While this acquisition ensures that existing depositors will retain access to their funds, the context surrounding First Republic's downfall remains deeply troubling.