What the Failure of First Republic Bank Means for You

First Republic: The basics

First Republic was a San Francisco-based bank founded in 1985.

JPMorgan Chase won the auction for the bank’s assets, paying $10.6 billion.

It won’t maintain the First Republic name.

That in turn scared customers into pulling their money out of these banks.

TheFDIC insurance protects deposits up to $250,000.

So account holders were more easily spooked into leaving the banks.

First Republic is the second-biggest US bank ever to fail, passing Silicon Valley Bank for the No.

(Topping the list is Seattle-based Washington Mutual, whichcollapsed during the 2008 financial crisis.)

Though taxpayers don’t pay into the FDIC directly, banks do.

As a result, banks could raise customer fees and lower interest rates to help foot the bill.

You should be able to bank as usual – even if you had more than $250,000.

The stock has stopped trading, and stockholders won’t be given JPMorgan Chase shares.

Shareholders are “last in line” to get anything, an FDIC spokespersontoldCBS News.

Talk to them about the best way to spread out your money so it’s in multiple insured accounts.