After a long weekend of negotiations JP Morgan was awarded approval from FDIC and government regulators to take over First Republic Bank.
How the questions come about as to what will change?
It appears that no deposits will be lost.
FRC 0 First Republic Stock is down under $2 per share. Dropping from $144 just a two months ago.
As much as bankers claim that this is the end of the crises… it is hard to believe that other banks are not exposes the same as SVB and FRC and that depositors will scramble to protect themselves to keep the balances under the $250k limit. Both business and individuals are exposed and the FDIC and government regulators need to do more to protect deposits and keep banks from running afoul from what could only be referred to as greed.
What happens to deposits now is to be seen. We don’t know if branches will be open and business will be conducted as usual. We can expect there will be a lot of layoffs, from reports it was close to 25% that was last reported.
The cost to the FDIC is estimated to be $13 billion, where is this money? The heads of FRC should be made to answer for this money, as many of them will surely be gone if not already gone much like the SVB collapse.
More regulation is needed is what it comes down to.
This is the message posted on the First Republic Site:
A message to First Republic clients from JPMorgan Chase:
MAY 1, 2023
JPMorgan Chase recently announced that we acquired a substantial majority of assets and assumed certain liabilities of First Republic Bank from the FDIC. JPMorgan will protect all deposits, insured and uninsured, bringing our financial strength, capabilities and capital to support First Republic’s clients and the U.S. banking system. JPMorgan Chase has been a leader in financial services for more than 200 years, and we look forward to continuing to serve you and be deserving of your trust and business.
What does this mean for you today?
You and your assets are now backed by the fortress balance sheet of JPMorgan Chase, and all of your deposits are protected.
You will receive uninterrupted service. All preferred banking offices will operate as usual. You can continue visiting your local First Republic preferred banking office to make financial transactions, and over time you will have access to JPMorgan Chase’s extensive branch network, the largest in the country, which includes more than 4,700 Chase branches across all lower 48 states and the District of Columbia, and 16,000 ATMs in 49 states.
You can still go to www.FirstRepublic.com to manage your finances online or on your First Republic mobile app.
You will continue to work with your team at First Republic.
You should not respond to calls or texts claiming to be from JPMorgan Chase or First Republic that ask for your personal financial information. We don’t do that. We will also never ask you to transfer funds using Zelle, Wires or ACH to safeguard your funds.
We look forward to serving you. Welcome to JPMorgan Chase.