U.S. President Joe Biden said today, Monday, after the collapse of the American First Republic Bank, that all deposits "will be protected" and that this situation must not happen again.

Biden said during an event at the White House dedicated to developing small businesses in the United States: "All savers are protected and taxpayers are out of danger. Let me be clear: all savers are protected, and more importantly, taxpayers are safe."

Earlier today, the California Department of Financial Protection and Innovation announced that regulators took over the troubled "First Republic" bank and it will be sold to JPMorgan.

Earlier this week, the Federal Deposit Insurance Corporation, a major federal regulator of American financial institutions, asked a number of banks to submit bids for the troubled lender in an attempt to secure a buyer before it goes into receivership.

JPMorgan, the largest bank in America, will assume all deposits, including all uninsured deposits, and significantly all assets of First Republic, according to a statement issued by the California regulatory authority.

The California Department of Financial Protection and Innovation appointed the Federal Deposit Insurance Corporation as the receiver of the bank headquartered in San Francisco, which had total assets of nearly $229.1 billion as of April 13, 2023, while its total deposits amounted to about $103.9 billion.

Deposits are federally insured by the Federal Insurance Corporation according to applicable limits, as stated in the statement.