The government-assisted sales of troubled First Republic, Signature and Silicon Valley banks have led to a destructive cycle. Buyers wait for banks to fail and get government aid before taking over, according to sources. JPMorgan emerged as the winner to purchase the failed lender First Republic Bank, after the FDIC seized it. JPMorgan will pay $10.6 billion and share losses with the government on residential mortgages and commercial loans. The FDIC will provide JPMorgan $50 billion of financing for five years at an undisclosed fixed rate.
Read more at Reuters