ashley: fox business alert. fdic approved j.p. morgan chase bid to buy first public bank. good morning, cheryl. cheryl: breaking overnight, regulators taking over first republic and selling it to j.p. morgan chase. this means a lot of stress on financial markets might be removed today. this was playing out over the weekend, ashley, j.p. morgan chase had been trying to buy first republic and they were the ones that got the deal done. all first republic branches will open today, 84 branches across the united states, all depositors will have access to
chinese spy balloon incident earlier this year. the biden administration faced criticism for allowing that balloon to fly across the u.s. before shooting it down. u.s. officials told nbc news the balloon gathered intelligence over sensitive military sites, but we re told this new object is not communicating any signals and did not cross over sensitive sites in hawaii. the pentagon, at least for now tonight, says no longer action is needed. courtney kube, with an update, thank you. another economic headline today. the latest bank failure first republic, now the third bank to fail in just two months. seized by federal regulators earlier today and sold to j.p. morgan chase. cnbc s andrew ross sorkin joining me. andrew, help us understand what happened here. reporter: this is the second largest bank failure since 2008. $100 billion of deposits left this bank over the last two months. it was a classic run on the bank. the government stepped in, saved that bank, and effectively sold it
banking system. the fiddic takes control of thi bank. j.p. morgan the winning bid. this started several weeks ago when you had svb and signature bank failing. that created some nerves about first republic. you then have a first quarter earnings call just last week by first republic where they announce that deposits fell by 41% totalling $100 billion. that sent the stock market spiralling. they were down from $122 in early march. now the treasury department out this morning with a statement on this deal, they said, quote, the banking system remains sound and resilient. and americans should feel confident in the safety of their deposits and the ability of the banking system to fulfill the essential function providing credit to businesses and families. but, caitlyn, there is a cost to the fdic. about $13 billion.
source tell cnn that federal regulators held an auction on sunday. the wall street journal reports j.p. morgan chase and pnc are among the top banks that submitted a bid. authorities are unlikely to submit the results of that auction in the coming hours. reporter: u.s. officials and investors are hoping that a white knight comes to the rescue of first republic bank. the fdic held an auction over the weekend trying to entice big banks to acquire this ailing regional bank, according to a person familiar with the matter. we don t know yet the results of that auction nor which banks actually placed bids to buy first republic. unlike silicon valley bank which imploded almost out of nowhere last month, republic has been teetering for weeks.
stocks react in the market and they do open soon. our cnn business xpont kpont is live outside a first republic bank in new york city. they re going to open this morning, operating as j.p. morgan. people have access to this. this is coming after first republic bank got that $30 billion life line from other banks, clearly did not. it helped them limp along the last few weeks. it did not help them ultimately in the end. they re going to open under new ownership. j.p. morgan chase buying first republic bank in a deal announced by the fdic early this morning. and this marks the second largest bank failure in u.s. history, a third bank failure in just the last couple weeks. this is an effort to shore up consumer confidence in the