• Ar
  • Es
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Feature
  • Videos
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Feature
Videos
Infographs
In Pictures
  1. Home
  2. News
  3. US & Canada
  4. JP Morgan to acquire First Republic
US & Canada

JP Morgan to acquire First Republic

  • By Al Mayadeen English
  • Source: Agencies
  • 1 May 14:39

US financial authorities have taken possession of California's troubled First Republic Bank.

  • JP Morgan to acquire First Republic after regulators take control
    First Republic Bank branch in San Francisco, California, US, April 28, 2023. (Reuters)

In the latest banking collapse, US financial authorities have taken possession of California's troubled First Republic Bank, which will be acquired by JP Morgan Chase. 

First Republic, the second-largest bank in terms of assets to fail in the United States, has been in freefall since revealing last week that it lost more than $100 billion in deposits in the first quarter, leading its shares to tumble. 

Read more: US capitalism is ‘breaking down before our eyes’: Griffin

The San Francisco-based institution was under intense pressure following the March bankruptcy of smaller banks Silicon Valley Bank and Signature Bank, which triggered worries of contagion and shook financial markets. 
 
Officials have been working feverishly to devise a rescue plan and according to a person familiar with the situation, the US Treasury and the Federal Deposit Insurance Corporation (FDIC), which is in charge of insuring bank deposits, approached six banks last week to evaluate their interest in purchasing First Republic's assets. 
 
As part of the agreement reached early Monday, the California regulator nominated the FDIC as receiver of First Republic, which will be sold to JPMorgan Chase immediately. 
 
According to the FDIC, the 84 First Republic offices in eight states will reopen as JPMorgan Chase Bank branches on Monday. 

In a statement, FDIC divulged that "to protect depositors, the FDIC is entering into a purchase and assumption agreement with JPMorgan Chase Bank, National Association, Columbus, Ohio, to assume all of the deposits and substantially all of the assets of First Republic Bank."

The federal regulator calculated that covering First Republic's losses would cost around $13 billion.  
 
The government's acquisition and sale of the bank comes two months after the fall of Silicon Valley Bank, which triggered a chain reaction as worried investors sought evidence of weakness in the larger banking system in the United States and Europe.  

Another US smaller bank fell in the aftermath of SVB's failure, while Credit Suisse became the most visible victim a few days later when authorities forced it to combine with its hated competitor, UBS. 
 
Regulators on both sides of the Atlantic acted quickly to halt the outflow of bank deposits by worried clients.  
 
In March, former Lehman Brothers executive Lawrence McDonald revealed that 50 more US bank collapses could be underway if the US government does not address structural issues.

  • JPMorgan
  • Banks
  • banking crisis
  • SVB collapse
  • JP Morgan Bank
  • First Republic
  • United States

Trending Now

All
JPMorgan Chase & Company Chairman and CEO Jamie Dimon photographed on April 18, 2023

JPMorgan CEO says US banking crisis 'over' after First Republic buyout

Most Read

The Middle East Stabilises, Against the Backdrop of a Great Unravelling

The Middle East Stabilises, Against the Backdrop of a Great Unravelling

  • Analysis
  • 28 May
In this image released by the Italian firefighters, a helicopter searches for missing passengers after a tourist boat capsized in a storm on Italy's Lago Maggiore in the northern Lombardy region, May 28, 2023 (AP)

Top Israeli intelligence official dead in Italy: Israeli media

  • Europe
  • 29 May
US linguist Noam Chomsky, who was among 550 academics who signed the petition calling on Glasgow University to respect free speech (AFP)

Chomsky: EU will deindustrialize if it abides by US-run world order

  • Europe
  • 31 May
Saudi Arabia's Hawiyah Natural Gas Liquids Recovery Plant which is operated by ARAMCO. (AP)

Tensions between Riyadh and Moscow on the rise due to oil prices: WSJ

  • MENA
  • 28 May

Read this

All
Israeli and US flags during a protest in support of US President Joe Biden, who criticized the plan this week, outside of the US Embassy Branch Office in 'Tel Aviv', occupied Palestine, Thursday, March 30, 2023. (AP)
Palestine

Israeli media: Washington wants Netanyahu out of the picture for JCPOA

  • Today
Occupation Military Intelligence chief  Aharon Haliva, September 13, 2022 (Israeli media)
Palestine

Israeli military officials condemn AMAN chief statements on Hezbollah

  • 2 Jun
A vessel that sank on Lake Maggiore in Italy with four fatalities, May 28, 2023 (Italian fire and rescue services)
Europe

Speculations about the purpose of the Israeli spies in northern Italy

  • 2 Jun
How weapon firms profit from Ukraine war
US & Canada

How weapon firms, think tanks profit from Ukraine war: Report

  • 2 Jun
Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS