{"id":2663,"date":"2023-05-01T08:14:04","date_gmt":"2023-05-01T12:14:04","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/jpmorgan-to-take-over-first-republic-bank\/"},"modified":"2023-05-01T08:14:05","modified_gmt":"2023-05-01T12:14:05","slug":"jpmorgan-to-take-over-first-republic-bank","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=2663","title":{"rendered":"JPMorgan to Take Over First Republic Bank"},"content":{"rendered":"
\n
<\/p>\n
<\/p>\n<\/figure><\/div>\n

\n JPMorgan Chase
\n will assume all deposits of
\n First Republic Bank
\n and take over the bulk of the the San Francisco-based bank\u2019s assets after it was closed by the Federal Deposit Insurance Corp.<\/p>\n

First Republic (ticker: FRC) shares plunged 46% in premarket trading to $1.90. JPMorgan shares rose 3.6%.<\/p>\n

\n

First Republic\u2019s 84 offices will be taken over by JPMorgan (JPM), the FDIC said in a statement Monday. JPMorgan said it wasn\u2019t assuming First Republic\u2019s corporate debt or preferred stock. The transaction is expected to add to JPMorgan\u2019s earnings and will generate more than $500 million of incremental net income per year.<\/p>\n

JPMorgan also will \u201cpurchase substantially all of First Republic Bank\u2019s assets,\u201d the FDIC said. As of April 13, that was about $221.1 billion in total assets and $103.9 billion in deposits. The FDIC and JPMorgan will share in losses on single family, residential, and commercial loans.<\/p>\n

\u201cThe loss\u2013share transaction is projected to maximize recoveries on the assets by keeping them in the private sector,\u201d the FDIC said. \u201cThe transaction is also expected to minimize disruptions for loan customers.\u201d<\/p>\n

The FDIC said the cost to the Deposit Insurance Fund will be about $13 billion.<\/p>\n

Rival banks that were reported to be bidding for First Republic slipped in early trading.
\n Citizens Financial Group
\n (CFG) declined 0.3%.
\n PNC Financial
\n (PNC) retreated 1.9%.<\/p>\n

\u201cOur government invited us and others to step up, and we did,\u201d said JPMorgan CEO Jamie Dimon in a statement. \u201cOur financial strength, capabilities and business model allowed us to develop a bid to execute the transaction in a way to minimize costs to the Deposit Insurance Fund.\u201d<\/p>\n

Investors lost confidence in First Republic after it reported last week that it lost $72 billion in deposits in the first quarter, raising concern that it was no longer viable.<\/p>\n

The episode follows spell of turmoil among bank stocks in March. That led to the failure of Silicon Valley Bank and Signature Bank. First Republic was rescued at the time when JPMorgan and a handful of other larger lenders offered to inject $30 billion of deposits into the lender.<\/p>\n

Other regional banks were edging down Monday.
\n PacWest Bancorp
\n (PACW) slipped 2% in premarket trading,
\n Western Alliance
\n (WAL) was down 0.2%, and
\n KeyCorp
\n (KEY) was up 0.1%.<\/p>\n

Write to Brian Swint at brian.swint@barrons.com<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

JPMorgan Chase will assume all deposits of First Republic Bank and take over the bulk of the the San Francisco-based bank\u2019s assets after it was closed by the Federal Deposit Insurance Corp. First Republic (ticker: FRC) shares plunged 46% in premarket trading to $1.90. JPMorgan shares rose 3.6%. First Republic\u2019s 84 offices will be taken […]<\/p>\n","protected":false},"author":1,"featured_media":2664,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-2663","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"\nJPMorgan to Take Over First Republic Bank | iFintechWorld<\/title>\n<meta name=\"description\" content=\"JPMorgan Chase will assume all deposits of First Republic Bank and take over the bulk of the the San Francisco-based bank\u2019s assets after it was closed by\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=2663\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" 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