© AP
The American regional bank Republic First Bank has been shut down by the regulator. The government agency that guarantees bank deposits closed the bank, after which the department and its regional counterpart Fulton Bank bought most of the deposits and assets.
Republic First Bank, which operated under the Republic Bank banner, another smaller banking player in the US has collapsed due to high interest rates. The Federal Deposit Insurance Corporation (FDIC) announced Friday night that its 32 offices in New Jersey, Pennsylvania and New York will open as branches of Fulton Bank today/Saturday.
Republic First Bank had about $6 billion in assets and $4 billion in deposits at the end of January. The bank based in Philadelphia (Pennsylvania) collapsed because high interest rates had led to losses on loans and financial products. Last year, Silicon Valley Bank, Signature Bank and First Republic — not to be confused with Republic First Bank — collapsed as a result.
The FDIC had already sought a buyer for Republic First Bank last year, but suspended that process after the bank reached an agreement with investors for a cash injection of $35 million. But that deal, which should ease shareholders’ concerns about the bank’s stability, collapsed earlier this year. The FDIC then began the sale process.
2024-04-27 10:24:03
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