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JPMorgan, Reportedly Seeks to Acquire First Republic Bank

Insider | | Apr 29, 2023

Unsplash Mariia Shalabaieva First republic bank - JPMorgan, Reportedly Seeks to Acquire First Republic Bank

Image: Unsplash/Mariia Shalabaieva

JPMorgan Chase and PNC Financial Services Group are in the running to buy First Republic as the troubled lender stares down impending receivership, The Wall Street Journal reported.

  • JPMorgan CEO Jamie Dimon is reportedly preparing to acquire First Republic Bank, which is facing receivership. The Federal Deposit Insurance Corporation (FDIC) has set a Sunday deadline for JPMorgan and PNC Financial Services Group to submit final bids for the troubled bank. Despite previously avoiding involvement in the rescue of Silicon Valley Bank, Dimon collaborated with the Federal Reserve to provide financial support to First Republic.
  • The bank's shares have plummeted, and efforts to save itself, including exploring options with investment bankers and implementing cost-cutting measures, have proved insufficient.  First Republic is worth 97% less than it did before Silicon Valley Bank collapsed last month.
    • The Federal Deposit Insurance Corporation (FDIC) is preparing to put First Republic in receivership, outlets including The Journal and Reuters reported Friday.
    • Bloomberg reported that JPMorgan and PNC had been given a Sunday deadline by the FDIC to submit final bids for the ailing bank.

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Jamie Dimon, CEO, JPMorgan:

"It is extremely important that we avoid knee-jerk, whack-a-mole or politically motivated responses that often result in achieving the opposite of what people intended," Dimon said in a letter to shareholders in early April.


NCFA Jan 2018 resize - JPMorgan, Reportedly Seeks to Acquire First Republic BankThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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