First Republic’s bankruptcy causes a sell-off of regional bank shares across the board.

Following the failure of First Republic Bank, the third significant casualty of the worst crisis to affect the U.S. banking sector since 2008, shares of regional lenders fell during morning trading on Monday.

Nearly 1% less people were using the KBW Regional Banking Index. Citizens Financial Group, PNC Financial Services Group, Truist Financial Corp., and U.S. Bancorp all experienced declines of 2.2% to 7%.

In an agreement reached earlier in the day, JPMorgan Chase & Co. agreed to pay the U.S. Federal Deposit Insurance Corp (FDIC) $10.6 billion in exchange for the majority of First Republic’s assets. This is the largest failure since Washington Mutual’s insolvency in 2008.

The regulator-engineered rescue effort sparked a sell-off in the mid-cap bank sector, even though investors took the quick deal for First Republic’s assets with a grain of salt. However, the majority of Wall Street analysts were optimistic about the rescue.

The agreement announced on Monday permits First Republic to close down in a controlled manner and spares regulators from having to guarantee all of the bank’s deposits, as they were forced to do when two additional banks failed in March.

“In our opinion, this helps usher in the end of the bank crisis phase. This is NOT to say that all issues, such as the recession, CRE, funding, and ALM, are resolved, but rather that we do not anticipate any more bank failures in the near future, according to analysts at Wells Fargo.

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