The New York Stock Exchange would be suspending trading in shares of First Republic Bank effective immediately, a day after the latter was acquired by JP Morgan Chase. JP Morgan Chase agreed to acquire all of First Republic's deposits and all of its assets after the regulator appointed the Federal Deposit Insurance Corporation as receiver.
The acquisition of First Republic came after its assets were seized on Monday by the California Department of Financial Protection and Innovation when efforts to rescue the lender failed. It follows the financial turmoil engulfed mid-size regional banks in the US and led to the collapse of Silicon Valley Bank and Signature Bank in March.
According to a statement from the NYSE, First Republic Bank's eight types of preferred stocks, including its common stock, will be delisted. Trading in the company’s securities will be "suspended immediately", the exchange said.
"The NYSE will apply to the Securities and Exchange Commission to delist the company’s securities upon completion of all applicable procedures, including any appeal by the company of the NYSE regulation staff’s decision," it said.
As of April 13, San Francisco-based First Republic Bank had about $229.1 billion in assets and $103.9 billion in deposits. According to the order of possession, the bank had $14.9 billion in available cash on hand as of close of business on April 28.
JP Morgan led a group of 11 banks including Bank of America, Citigroup and Wells Fargo that extended a $30 billion lifeline to First Republic in March, but the move failed to quell investor concerns.
