- May 2, 2023
JPMorgan buys First Republic, US’s 2nd biggest bank failure – Times of India
JPMorgan Chase agreed to acquire First Republic Bank in a government-led deal for the failed lender, putting to rest one of the biggest troubled banks remaining after turmoil engulfed the industry in March.
JPMorgan acquired about $173 billion of First Republic’s loans, $30 billion of securities and $92 billion in deposits. JPMorgan and the Federal Deposit Insurance Corporation (FDIC) agreed to share the burden of losses, as well as any recoveries, on the firm’s single-family and commercial loans.
The transaction, announced in early morning hours on Monday after First Republic was seized by regulators, makes the biggest US bank even larger while minimising the damage to the FDIC’s guarantee fund.
First Republic was the second-biggest bank failure in US history, and the fourth regional lender to collapse since early March.
“This is getting near the end of it, and hopefully this helps stabilise everything,” JPMorgan CEO Jamie Dimon said on a call with journalists on Monday. Regional banks that reported first-quarter results in recent weeks “actually had some pretty good results”, the CEO said. “The American banking system is extraordinarily sound.”
JPMorgan acquired about $173 billion of First Republic’s loans, $30 billion of securities and $92 billion in deposits. JPMorgan and the Federal Deposit Insurance Corporation (FDIC) agreed to share the burden of losses, as well as any recoveries, on the firm’s single-family and commercial loans.
The transaction, announced in early morning hours on Monday after First Republic was seized by regulators, makes the biggest US bank even larger while minimising the damage to the FDIC’s guarantee fund.
First Republic was the second-biggest bank failure in US history, and the fourth regional lender to collapse since early March.
“This is getting near the end of it, and hopefully this helps stabilise everything,” JPMorgan CEO Jamie Dimon said on a call with journalists on Monday. Regional banks that reported first-quarter results in recent weeks “actually had some pretty good results”, the CEO said. “The American banking system is extraordinarily sound.”
