Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Israeli media platform: The Degel HaTorah party, which has four members in the Knesset, announces its withdrawal from Netanyahu's cabinet.
Local Syrian sources: The raids targeted the road between the village of Al-Mazra'a and the city of Sweida, where forces and factions affiliated with the Syrian Ministry of Defense are advancing.
Local Syrian sources: New raids carried out by Israeli warplanes targeted vehicles and gatherings of military factions affiliated with the new Syrian Ministry of Defense.
Local Syrian sources: Israeli raids target, for the third time, gatherings of Syrian Defense Forces military factions in the southern countryside of Sweida.
The Ministry of Health in Gaza: Gaza Strip hospitals received 120 martyrs and 557 wounded in the past 24 hours.
The Israeli Walla! website: We are running out of stockpiles, our forces are exhausted, and the lives of the captives are in danger. It is time for a ceasefire deal in Gaza.
Several wounded in an Israeli bombardment of a tent in al-Mawasi, south of Khan Younis in the Gaza Strip.
Israeli media: Three wounded, three killed in an ongoing operation in the Gaza Strip.
Al Mayadeen's correspondent in southern Lebanon: Israeli artillery shelling targets the outskirts of the town of Shebaa
Al-Qassam Brigades: The targeting took place at the intersection of 'Street 5' with the western line north of Khan Younis

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

  • By Al Mayadeen English
  • Source: Agencies
  • 2 May 2023 15:39
  • 1 Shares
3 Min Read

The banking giant announced the buyout after it won an auction to acquire First Republic over the weekend.

  • x
  • JPMorgan Chase & Company Chairman and CEO Jamie Dimon photographed on April 18, 2023
    JPMorgan Chase & Company Chairman and CEO Jamie Dimon photographed on April 18, 2023. (AFP)

Moments after the announcement that JPMorgan Chase acquired First Republic Bank was made, JPMorgan Chase CEO and billionaire Jamie Dimon told analysts that the present banking crisis was over. 

"There are only so many banks that were offsides this way," Dimon told analysts in a call after the acquisition was announced on Monday.

"There may be another smaller one, but this pretty much resolves them all," Dimon said. "This part of the crisis is over."

The banking giant announced the buyout after it won an auction to acquire First Republic Bank over the weekend. This means that all assets of First Republic will be transferred to JPMorgan after they were seized by FDIC regulators. 

Read more: Swiss UBS Bank to take over Credit Suisse for $3.24bln in shares

The total of deposits which JPMorgan will acquire amount to an estimated $92 billion. It will also purchase an estimated $173 billion in loans and $30 billion in securities from First Republic. 

The FDIC is also expected to cover $13 billion in losses and provide JPMorgan with $50 billion in financing.

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. 

Related News

Bolton dismisses Trump’s Nobel hopes over Ukraine policy shift

US pressure on Lebanon grows over Resistance disarmament plan

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 worked 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. 

Read more: US banking crisis to worsen if structural problem not addressed
 
As part of the agreement reached early Monday, the California regulator nominated the FDIC as receiver of First Republic, which was sold to JPMorgan Chase immediately. 

In a statement, FDIC explained 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 largest bank failure in US history remains that of Washington Mutual, which crashed in 2008 and declared losses worth $307 billion in assets.

White House Press Secretary Karine Jean-Pierre said in response to the latest buyout that the current financial setbacks were "very different" from those of 2008. 

Read more: JPMorgan, Epstein still had ties after account closure: Reports

The 2008 crisis was triggered by the use of subprime mortgages that fueled a housing bubble. The burst of the bubble had resulted in banks being left to hold trillions of dollars of worthless investments, causing several lenders to declare bankruptcy.

It is remembered as the worst economic downturn since the Great Depression and took several years before most Americans were able to recover. 

Read more: JPMorgan CEO voices pessimism about US Economy

  • United States
  • JPMorgan
  • First Republic
  • banking crisis

Most Read

Hezbollah SG reveals war details on Al Mayadeen for the first time

Hezbollah SG reveals war details on Al Mayadeen for the first time

  • Politics
  • 8 Jul 2025
Major ambush in Gaza kills 6 Israeli troops, injures dozens

Major ambush in Gaza kills 5 Israeli troops, injures 14

  • Politics
  • 8 Jul 2025
Israeli soldiers are seen in Beit Hanoun ahead of an operation by the al-Qassam Brigades, undated (Al-Qassam Brigades Military Media)

'Israel' on blast as media exposes report discrepancies in Gaza ambush

  • Palestine
  • 8 Jul 2025
Yemen Navy sinks ETERNITY C ship, shares footage of operation

Yemen Navy sinks ETERNITY C ship, shares footage of operation

  • Politics
  • 9 Jul 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
Al Mayadeen: UN Palestine Inquiry members reportedly resigned
Politics

Al Mayadeen: UN Palestine Inquiry members reportedly resigned

Rutte, Trump
US & Canada

Trump threatens 100% secondary tariffs on Russia, sets deadline

Syrian government soldiers on a motorcycle pass by a burning tank on the outskirts of Sweida city, where clashes erupted between the Druze community and Bedouine clans, in southern Syria, Monday, July 14, 2025 (AP)
Politics

Israeli airstrikes target Syrian military factions near Sweida

Lebanon, US, disarmament
MENA

US pressure on Lebanon grows over Resistance disarmament plan

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

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