In a move to avoid another banking crisis, the Federal Deposit Insurance Corporation (FDIC) seized First Republic Bank and sold it to JPMorgan Chase, including all $103.9 billion in deposits and $229.1 billion in assets. First Republic Bank's failure represents the second-largest bank failure in the US, losing $100 billion in deposits just two months ago after the fall of Silicon Valley Bank.

Alarmingly, three of the four largest-ever bank failures have now taken place in the past eight weeks, including First Republic, Silicon Valley Bank, and Signature Bank. These failures raise concerns about the stability of the US banking system and the potential for more bank failures in the near future.

While many analysts do not expect First Republic to cause a domino effect like we saw in 2008, others are skeptical. The US banking system operates on a fractional reserve system, meaning banks only need to hold 10% of the funds customers deposit. This makes banks vulnerable to panic and bank runs, especially in today's world where information and fear spread faster than ever before.

FDIC insurance can only do so much to restore confidence in such an environment, and with the Fed continuing to fight inflation by raising interest rates, we are seeing more and more cracks in the system. The question remains: could we see a similar economic collapse as we did in 2008? Only time will tell.