US regulators have recently announced the first bank failure of the year 2024. The Federal Deposit Insurance Corporation (FDIC) has taken action to safeguard $6 billion in assets and $4 billion in customer deposits at Philadelphia-based Republic Bank. The assets will be promptly transferred to Fulton Bank, which is also located in Philadelphia and was a former competitor of Republic Bank.

The 32 branches of Republic Bank in New Jersey, Pennsylvania, and New York will reopen as branches of Fulton Bank on either Saturday (for branches with normal Saturday hours) or Monday during regular business hours. Depositors of Republic Bank will have access to their funds through check writing, ATM usage, or debit card transactions during the evening and over the weekend. Checks drawn on Republic Bank will still be processed, and loan customers are advised to continue making their payments as usual.

This bank failure comes after the notable collapses of Silicon Valley Bank, Signature Bank, and First Republic last year, which are among the largest bank failures in American history. The FDIC estimates that the failure of Republic Bank will result in a cost of approximately $667 million, which will be deducted from the FDIC’s bank-sponsored Deposit Insurance Fund (DIF).

Concerns about the overall health of the banking industry have persisted this year, mainly due to worries about its exposure to the troubled commercial real estate market and unrealized losses on US Treasuries. It is crucial for investors to conduct thorough research before engaging in high-risk investments in Bitcoin, cryptocurrency, or digital assets. Transfers and trades should be approached with caution, as any losses incurred are the responsibility of the individual. The Daily Hodl does not provide investment advice or recommend the buying or selling of cryptocurrencies or digital assets. The website participates in affiliate marketing.