Regional banks are seeing flight of deposits to too-big-to-fail megabanks

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The unexpected demise of Signature Bank over the weekend, along with the failure of Silicon Valley Bank, ignited a shoot-first-ask-questions-later reaction among regional-bank investors as customers moved deposits to the largest U.S. banks for perceived safekeeping, observers said Monday.

First Republic Bank said it received liquidity from the Federal Reserve and JPMorgan Chase & Co.  JPM, -1.61% to bring its total liquidity up to $70 billion.

First Republic’s executive chair, Jim Herbert, told CNBC-TV the bank has not seen many depositors leave and that it’s been able to meet demands for withdrawals.

First Republic said it’s open for business as usual, according to a Monday statement.

“We’re continuing to fully serve the needs of our clients by opening accounts, making loans, executing transactions and delivering exceptional service at our offices and online,” the bank said in an email to MarketWatch.