The crisis that led to the fall of three regional American banks in recent weeks has largely ended following the First Republic resolution, JPMorgan Chase chief Jamie Dimon said today.

The Federal Deposit Insurance Corporation took over the bank, and New York’s JPMorgan announced early Monday that it was acquiring nearly all of First Republic’s deposits and most of its assets.

Dimon said the bailout would “help stabilize the system.”

While the failures of two other banks in March shocked the financial world and created problems, “the US banking system is extremely healthy,” the JP Morgan CEO said in a telephone interview with reporters.

Unrest after SVB and Signature bankruptcies

The banking institution was in turmoil after the bankruptcies of SVB and Signature, which were taken over by regulators after a massive exodus of customers concerned about their viability.

Then the authorities and other big banks rushed to save the First Republic to avoid the same fate: 11 financial institutions agreed to allocate a total of $30 billion for this purpose.

But that wasn’t enough to reassure investors, and Wall Street stocks continued to fall.

The bank failed to come up with a satisfactory rescue plan, and when it confirmed last Monday that many customers had withdrawn their deposits in the first quarter of this year, totaling more than $100 billion, its shares plummeted.

At the close of the stock market on Friday, First Republic was worth just $654 million, up from over $20 billion at the start of the year and over $40 billion at its peak in November 2021.

The authorities, who seemed reluctant to rush to bail out yet another bank, finally took action.

In the middle of last week, the FDIC and the Treasury asked banks to express interest, and on Friday they gave a handful of them access to additional financial information about the First Republic.

According to the FDIC, the bidding process was “highly competitive” and resulted in a deal “meeting the lower cost requirement.”

According to CNBC, AFP, APE-MPE.