JPMorgan Chase acquires First Republic Bank
JPMorgan Chase acquires “all of the deposits and substantially all of the assets of First Republic Bank.” The branches of the bank will reopen Monday as branches of JPMorgan Chase Bank.
Similar to Silicon Valley and Signature Bank, JPMorgan Chase had the majority of its deposits uninsured. This has fuelled concerns among investors the failure of the Bank would lead to them losing part of their deposits.
JPMorgan’s quarterly results revealed the banking crisis drove investors to withdraw more than $100bn out of it.
Steven Kelly, a researcher at the Yale School of Management’s Programme on Financial Stability said “getting the bank in the hands of a larger one is the best possible economic outcome.”
Gary Cohn, a former Goldman Sachs president said JPMorgan’s selling is likely to occur through a “much faster process.”
Cohn anticipated “FDIC will seize control and then simultaneously resell the asset to the successful bidder.”
California regulators have been keen on solving the troubled situation of JPMorgan Chase before U.S. stock markets opened Monday.
The bank’s stocks closed at $3.51 on Friday, and continued to decrease in afterhours trading