First Republic Bank: JP Morgan will buy First Republic Bank, depositors will get full money


Posted on 2nd May 2023 11:26 am by rohit kumar

America's 14th-largest First Republic Bank has been acquired after failing banking operations. JPMorgan Chase & Co won the bid to acquire the bank. JP Morgan will acquire First Republic's assets, which include approximately $173 billion in loans and $30 billion in securities, as well as $92 billion in deposits.

 

The agency said in a statement early Monday that JPMorgan and the Federal Deposit Insurance Corp agreed to share the burden of losses on commercial loans as well as any recoveries. "Our financial strength, capabilities, and business model allowed us to win the bid," he said.

 

11 American banks tried to save the First Republic

Shares of First Republic plunged more than 33% during pre-market trading as of 4:06 a.m. in New York, putting it on track to extend its decline of 97% this year. JPMorgan shares gained 3.8%. Eleven US banks tried to keep the First Republic afloat by pledging $30 billion in new deposits on March 16, including JPMorgan, Bank of America Corp, Citigroup Inc, and Wells Fargo & Co.

 

Goldman Sachs Group Inc and Morgan Stanley and other banks had offered smaller amounts as part of a plan drawn up with US regulators. But this was not enough. The stock, which was above $170 billion in March 2022, fell below $5 billion by the end of April.

 

First Republic Bank has been sold and bought many times

First Republic Bank has been bought and sold many times over the years. Merrill Lynch & Company paid $1.8 billion to acquire First Republic in 2007. Its ownership was then passed to Bank of America when it bought Merrill Lynch in 2009. Then in mid-2010 investment firms including General Atlantic and Colony Capital bought First Republic for $1.86 billion and took it public.

 

Also Read: Repo Rate: RBI Monetary Policy April 2023 Minor relief from the increasing burden of loan and EMI, no change in repo rate this time

1 Like 0 Dislike
Previous news Next news
Other news

Supreme Court: SC refuses to hear the case of VIP darshan in the temple, the court said- this is a policy matter, but...

The Supreme Court refused to hear a petition challenging the 'VIP' darshan facility in temples in

Farmer Protest: The Shambhu border has not opened even after six days of the High Court order, now this is the strategy of farmers

Even after six days of the order of the Punjab and Haryana High Court, the Haryana government has

Lok Sabha Election 2024: Voting tomorrow on eight seats of UP, a test of many veterans; Strength of political houses will be tested

Voting for the first phase of Lok Sabha elections will be held on eight seats on April 19 from 7

Delhi Polls: PM Modi will blow the election bugle in Delhi tomorrow, and will unveil several projects worth Rs. 4500 crore

Prime Minister Narendra Modi will blow the bugle for the Delhi assembly elections on Friday. The

'I am a big fan of India...', good news will be received soon on India-US trade deal; Trump's minister claims

Talks have been going on between India and America for a long time on a trade deal. However, now

An alleged picture surfaced before the launch of the Samsung Galaxy Z Fold 5, came to know this big thing

Samsung's name is at the forefront of the foldable smartphone. In the year 2019, with its first f

Mahadev Betting App: Owner Ravi Uppal caught in Dubai on Interpol notice; ED trying to extradite him to India

Ravi Uppal, accused in the case of illegal betting and money laundering, has been detained in Dub

What did Kunal Kamra say to Shinde that created a ruckus; now the police have filed a case.

Maharashtra politics has become bitter over the comments of comedian Kunal Kamra. Many Shiv Sena

Weather update: Heavy rain alert in 14 states including UP-Bihar, Jammu, and Kashmir; Flood in 18 districts of Gujarat

The Meteorological Department (IMD) has issued a heavy rain alert for 14 states including Gujarat

IND vs AUS: Is Rohit Sharma's ODI record in danger? Former Australian captain claims

Former Australia captain Aaron Finch caused a stir on social media when he revealed which cricket

Sign up to write
Sign up now if you have flare of writing..
Login   |   Register
Follow Us
Indyaspeak @ Facebook Indyaspeak @ Twitter Indyaspeak @ Pinterest RSS



Play Free Quiz and Win Cash