U.S. Treasury encouraged by First Republic resolution, says banking system remains sound

The U.S. Treasury Department is encouraged that First Republic Bank was resolved with the least cost to the Deposit Insurance Fund, and believes the U.S. banking system remains sound and resilient, a Treasury spokesperson said early Monday. U.S. regulators on Monday seized First Republic, the third major U.S. institution to fail in two months, with JPMorgan Chase & Co agreeing to take $173 billion of the bank's loans and $30 billion of its securities, including $92 billion of deposits.

"Treasury is encouraged that this institution was resolved with the least cost to the Deposit Insurance Fund, and in a manner that protected all depositors," the spokesperson said.