The seizure and sale of First Republic over the weekend closed the book on the most glaring problem left from the U.S. regional banking crisis, but now investors will turn to see if new stresses emerge and evaluate whether mid-sized banks can become good bets for the future. First Republic's demise was the third regional bank failure since early March, when Silicon Valley Bank and Signature Bank folded within days of each other.
mountain PacWest's stock was under pressure early on Monday. "There are only so many banks that were offsides this way. There may be another smaller one, but this pretty much resolves them all; this part of the crisis is over ," JPMorgan CEO Jamie Dimon said on a conference call Monday to discuss the purchase of First Republic. However, the failure of First Republic could cause some more turbulence, at least in the short-term, for both deposits and bank stocks.