US govt shutters First Republic, JP Morgan takes over deposits

US financial authorities have finalized a deal that rescues clients of First Republic Bank but shuts down the bank itself. The institution has been in crisis since March when it fell victim to a crisis of confidence across the financial sector. Wall Street behemoth JP Morgan Chase will take over responsibility for the depositors' accounts. First Republic's troubles came in the wake of the collapse of Silicon Valley Bank. On Friday, the Federal Reserve said severe mismanagement and a lack of oversight led to SVB's demise. A recent rapid rise in interest rates intended to tame inflation caught both institutions off guard, and some lawmakers blame the relaxation of rules in 2018 that let banks operate with less cash on hand to meet depositors' needs.
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