JPMorgan Chase takes over First Republic after biggest U.S. bank failure since 2008
Publishing timestamp: 2023-05-01 12:22:59
Summary
JPMorgan Chase has acquired all of First Republic's deposits and a "substantial majority of assets" after regulators took possession of the bank, marking the third failure of an American bank since March. First Republic, which lost more deposits than expected in March, was seen as the weakest link in the US banking system after the sudden collapse of Silicon Valley Bank. JPMorgan emerged as the winner of the weekend auction for First Republic, which will add over $500m of profit annually to the bank, excluding one-time costs. The transaction will cost the FDIC's Deposit Insurance Fund an estimated $13bn.
Sentiment: NEGATIVE
Keywords: breaking news: markets, investment strategy, jpmorgan chase & co, business news, jamie dimon, breaking news: investing, breakingnewsglobal, first republic bank, banks, fdic, business,
Source: https://www.cnbc.com/2023/05/01/first-republic-bank-failure.html