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JPMorgan Chase acquires the majority of assets and assumes certain liabilities of First Republic Bank
Asset Managers

JPMorgan Chase acquires the majority of assets and assumes certain liabilities of First Republic Bank

No systemic risk exception is required; a competitive bid process minimizes costs to the Deposit Insurance Fund, said JPMorgan Chase.
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2 MAY, 2023

By RankiaPro Europe

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JPMorgan Chase (NYSE: JPM) yesterday announced it has acquired the substantial majority of assets and assumed the deposits and certain other liabilities of First Republic Bank from the Federal Deposit Insurance Corporation (FDIC).  In carrying out this transaction, JPMorgan Chase supports the U.S. financial system through its significant strength and execution capabilities. As part of the purchase, JPMorgan Chase assumes all deposits – insured and uninsured. 

Key transaction elements following the FDIC’s competitive bidding process include:

First Republic branches will open on Monday, May 1, as normal, and clients will continue to receive uninterrupted service, including digital and mobile banking capabilities.

As a result of this transaction, JPMorgan Chase expects to:

The transaction is expected to be modestly EPS accretive and generate more than $500 million of incremental net income per year, not including the approximately $2.6 billion one-time post-tax gain or approximately $2.0 billion of post-tax restructuring costs expected over the course of 2023 and 2024.

The acquired First Republic businesses will be overseen by JPMorgan Chase’s Consumer and Community Banking (CCB) Co-CEOs, Marianne Lake and Jennifer Piepszak.

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