"The banking system remains sound and resilient, and Americans should feel confident in the safety of their deposits and the ability of the banking system to fulfill its essential function of providing credit to businesses and families," a Treasury spokesperson said. In the wake of the takeove, the Treasury Department sought to reassure Americans about the country's financial system. "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." "Our government invited us and others to step up, and we did," he said. JPMorgan CEO Jamie Dimon touted the acquisition in a statement early Monday morning. "All depositors of First Republic Bank will become depositors of JPMorgan Chase Bank, National Association, and will have full access to all of their deposits." "First Republic Bank's 84 offices in eight states will reopen as branches of JPMorgan Chase Bank, National Association, today during normal business hours," the FDIC said in a statement. The California Department of Financial Protection and Innovation said Monday it had taken possession of First Republic and appointed the FDIC as receiver. By way of comparison, the SVB process cost the fund about $20 billion. The transaction will cost the FDIC's Deposit Insurance Fund an estimated $13 billion, according to the regulator. The weekend auction, which drew bids from JPMorgan Chase and PNC, as well as interest from other banks, was a "highly competitive bidding process," according to the FDIC. Shares of First Republic had lost 97% as of Friday's close. Institutions with a high proportion of uninsured deposits found themselves vulnerable because customers feared losing savings in a bank run. It focused on serving rich coastal Americans, enticing them with low-rate mortgages in exchange for leaving cash at the bank.īut that model unraveled in the wake of the SVB collapse, as First Republic clients withdrew more than $100 billion in deposits, the bank revealed in its earnings report April 24. Like SVB, which catered to the tech startup community, First Republic was also a California-based specialty lender of sorts. Since the sudden collapse of Silicon Valley Bank in March, attention has focused on First Republic as the weakest link in the U.S. Back then, it was also JPMorgan that won the failed banks' assets. ![]() ![]() The seizure of First Republic resulted in the biggest bank failure since the 2008 financial crisis, when Washington Mutual imploded. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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