Why First Republic failed. Are other banks to follow?

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First Republic Bank

The Associated Press

First Republic Bank has become the second large regional bank with assets over $200 billion to fail in just a few weeks.

Like Silicon Valley Bank, which was seized by the government on March 10, First Republic catered to a wealthy clientele, which helped it grow deposits rapidly but may have also contributed to its undoing.

Investors and analysts have also worried about banks such as Comerica and KeyCorp, which also had large numbers of accounts with deposits above the federally-insured level of $250,000. Those banks appear safe for now, analysts say.

Read the full story on AP News right here.

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5/1/2023 4:44:31 PM (GMT -5:00)

Categories: Regional and US News