by Ben Zeisloft, Daily Wire:
JPMorgan Chase assumed control of First Republic Bank on Monday after the latter company collapsed due to turmoil in the financial sector.
First Republic Bank, headquartered in San Francisco, California, caters mainly to wealthy clients with account balances above the $250,000 deposit threshold backed by the Federal Deposit Insurance Corporation (FDIC). The company saw customers withdraw their funds in recent weeks as the recent implosions of Silicon Valley Bank and Signature Bank rattled account holders, prompting FDIC officials to secure insured and uninsured deposits at the two failed companies to decrease the risk of bank runs at other institutions.
TRUTH LIVES on at https://sgtreport.tv/
JPMorgan Chase, already the largest bank in the United States and the largest bank in the world by market capitalization, will acquire all of the $103.9 billion in deposits and “substantially all” of the $229.1 billion in assets maintained by First Republic Bank, according to a statement from the FDIC, which said, “the resolution of First Republic Bank involved a highly competitive bidding process.” The offices controlled by First Republic Bank will open on Monday as branches of JPMorgan Chase, where depositors can continue conducting business.
“Our government invited us and others to step up, and we did,” JPMorgan Chase CEO Jamie Dimon said in a statement. “Our 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. This acquisition modestly benefits our company overall, it is accretive to shareholders, it helps further advance our wealth strategy, and it is complementary to our existing franchise.”
FDIC officials agreed to a loss share agreement with respect to single-family residential mortgages and commercial loans, while JPMorgan Chase will not assume First Republic Bank corporate debt or preferred stock.
