Who’s next? This was caused by the failure of First Republic Bank (FRC), which led to its takeover by JPMorgan (JPM). Domino effectFRC’s failure comes after the collapse of Silvergate Capital, Silicon Valley Bank, and Signature Bank (see Bank Rout, March 13, 2023). While depositors are being protected by regulators, equity and debt investors continue to suffer painful losses as the contagion unfolds. It is, therefore, critical for banking regulators to take action in order to restore trust and confidence in the US banking system.
