Regulators took over First Republic Bank and sold most of its assets to JPMorgan Chase.
This marks the third major bank failure in the United States in less than two months.
The Federal Deposit Insurance Corporation (FDIC) briefly took over First Republic Bank over the weekend before selling the bank's assets.
As a result, JPMorgan emerged as the leading bidder to take over the bank's deposits as well as large amounts of certain assets and liabilities.
JP Morgan Chase Chief Executive Officer Jamie Dimon welcomed the acquisition which was seen as modestly beneficial to the company as a whole.
The move is said to be progressive for shareholders that helps increase the company's wealth and complements the existing franchise, he said.
Following the acquisition, 84 First Republic branches opened as JPMorgan Chase Bank branches on Monday, and depositors had full access to their money.
First Republic Bank came under widespread pressure last week after it announced it lost about $100 billion in deposits in the first quarter of the year.
As a result, First Republic shares plunged 97% as of Friday.
