Philadelphia-based bank Republic First Seized by US Regulators; What’s Next?
Highlights
- The Federal Deposit Insurance Corp. announced that US regulators had seized Republic First Bancorp
- To "protect depositors," Fulton Bank, a division of Fulton Financial Corp., has been designated as a receiver by the FDIC, which stated that it will buy all of Republic Bank's assets and assume nearly all of its deposits.
- Republic First Bancorp—which had been in difficulty for a while—officially failed with possibly zero to less involvement of digital assets in this case.
The collapse of Republic First Bancorp has led to the bank’s seizure by regulatory authorities. According to news reports, the Federal Deposit Insurance Corp. announced that US regulators had seized Republic First Bancorp and agreed to sell it to Fulton Bank. The failure of the banks highlights problems faced by smaller banks in the US.
Republic First Will be Sold to Fulton Bank
After giving up on funding negotiations with a group of investors, the Philadelphia-based bank was taken over by the Pennsylvania Department of Banking and Securities. To “protect depositors,” Fulton Bank, a division of Fulton Financial Corp., has been designated as a receiver by the FDIC, which stated that it will buy all of Republic Bank’s assets and assume nearly all of its deposits.
No Involvement of Crypto in Republic First Bancorp Collapse?
Last year saw four bank failures in the US. On March 8, Silvergate Bank closed, on March 10, Silicon Valley Bank collapsed, and on March 12, Signature Bank failed. Regulators have questioned cryptocurrency’s participation in bank failures in the past weeks. Still, in the case of First Republic, the bank appears to have failed without the assistance of digital assets.
The Federal Deposit Insurance Corporation stated on March 28 that Silvergate’s “business model focused almost exclusively on providing services to digital asset firms.” The agency said the company’s reliance on cryptocurrency was dangerous.
The FDIC further stated that in Signature’s instance, the run was ultimately caused by concerns about the cryptocurrency market, despite the bank having a more varied deposit base.
However, Republic First Bancorp—which had been in difficulty for a while—officially failed with possibly zero to less involvement of digital assets in this case. Though the full details of asset exposure for the bank are still not fully known, the regulators will likely not be able to blame this fall on the crypto markets.
Read Also: Runes Exploits Network’s Design Flaw: Bitcoin Core Dev Insists
- John Bollinger Sees ‘W’ Bottom Forming in Ethereum and Solana, Not Bitcoin
- Robert Kiyosaki Calls Bitcoin and Ethereum ‘Real Money,’ Urges Investors to Ditch ‘Fake’ Fiat
- ‘Sell Gold, Buy Bitcoin’: Expert Flags Major Market Bottom Signal
- Ripple Makes ‘Unusual’ $500M Transfer Amid $1 Billion XRP Treasury Plans
- ‘I’m Going Bonkers’: Dave Portnoy Says He’ll Buy XRP Again If It Dips Below This Level
- Solana Price Prediction: Analyst Notes Bearish Breakdown Amid Derivatives Slowdown
- Shiba Inu Price Eyes Recovery as Burn Rate Jumps 10,785% – Can SHIB Hit $0.000016?
- Ethereum (ETH) Price Prediction: Analyst Eyes $7,000 by Q4 as Bitmine Accumulates $281M ETH — Will History Repeat Itself?
- HYPE Price Teeters Amid Weak Technicals and Soaring Liquidations
- XRP Price Prediction As Ripple Announces $1B Treasury Plans – Is a Rebound Imminent?
- Bitcoin Price Prediction Amid Gold’s Parabolic Rally to Second-Largest Reserve Asset
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
