JP Morgan will take over the assets of US bank First Republic after it failed to become the third American lender in two months.

JP Morgan and regulators have agreed to a deal for JP Morgan to buy the “substantial” majority of First Republic assets, which includes $173 billion in loans (PS138bn).

First Republic was seized by the California Department of Financial Protection and Innovation on Monday morning, and its receiver would be the Federal Deposit Insurance Corporation.

After investors withdrew their funds, US lenders Silicon Valley Bank as well as Signature Bank failed.

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Federal Reserve, the US central bank was forced to take emergency measures in order to stabilize the markets and prevent further withdrawals of funds amid fears that a wider banking crisis could be looming.

The turmoil caused by the events also brought Credit Suisse down and deeply rattled investors. This led to a period of unrest for stock indexes that lasted for several weeks.

May Day holidays in several countries limited the initial market reaction to the latest collapse. Tokyo’s Nikkei added 0.9%, and the S&P/ASX 200 index in Sydney advanced 0.5%.

The UK, European markets and other markets are closed.

Futures for S&P 500, Dow industrials and Dow Jones Industrials all edged up less than 0.1%.

US regulators announced in a press release that JP Morgan would take over the majority of First Republic’s assets, as well as all deposits including those not insured.

Jamie Dimon is the chairman and CEO of JPMorgan Chase. He said, “Our government invited JPMorgan Chase and other companies to step up and we did.”

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Our financial strength, business model and capabilities allowed us to create a bid that would minimize costs for the Deposit Insurance Fund.”

First Republic, founded in 1985, was valued at $229.1bn as of the 13th April, and had $103.9bn worth of deposits.

According to a statement, the 84 offices of the failed bank in eight states will be reopened as branches for JPMorgan Chase Bank on Monday.

First Republic shares have fallen to new record lows, after the San Francisco-based bank said that last month’s financial crisis had led customers to withdraw over $100bn in deposits (PS79.8bn).