USA: Final Closure Announced Due to Republic First Bank Bankruptcy

The fourth major US lending institution has closed in less than a year. Following the bankruptcies of Silicon Valley Bank, Signature Bank, and First Republic Bank, US authorities officially announced on April 26, 2024 the commencement of bankruptcy proceedings against Republic First Bancorp, which operated under the name Republic Bank. The Federal Deposit Insurance Corporation (FDIC) announced that “Philadelphia-based Republic First Bank has been closed by Pennsylvania regulators.” The federal agency also informed Republic First Bank customers of an agreement with Fulton Bank, which “will guarantee the safety of deposits and buy back all assets under Republic First’s management, valued at approximately $6 billion at the end of 2023.” Under the agreement, 32 branches and offices of the failed bank in New Jersey, Pennsylvania, and New York will open on April 27 as Fulton Bank branches.

The FDIC is a US government agency with over 90 years of history, created by the Glass-Steagall Act of 1933. This agency represents both the Administration and the Federal Reserve. It not only manages federal funds, but also performs other important functions, including insuring member banks’ deposits up to $250,000 per depositor. It also monitors the solvency of state-owned banks, which are not subject to supervision by the Federal Reserve.