On Wednesday, Michael Roffler, the former CEO of First Republic Bank, will testify before a House Financial Services subcommittee about the bank’s collapse. He blames the contagion from the failures of other regional banks for the bank’s downfall. Over $100 billion in deposits were withdrawn from the bank in response to an industry-wide panic.
Roffler also noted that the bank’s financial position and strategy were regularly reviewed by the California Department of Financial Protection and Innovation (DFPI) and the FDIC. On May 1, California banking regulators shut down First Republic Bank and sold its assets to JPMorgan Chase & Co.
The collapse of First Republic Bank is the largest U.S. bank failure since the 2008 financial crisis. Roffler’s testimony will provide insight into the events that led to the bank’s downfall and the role of regulators in the process.