JPMorgan, a banking and insurance firm, has stated today that it had bought the bulk of the assets and deposits of First Republic Bank from the Federal Deposit Insurance Corporation (FDIC). As per Reuters, JPMorgan Chase is assisting the US financial system by executing this deal due to its tremendous power and operational skills.
Marianne Lake and Jennifer Piepszak to Lead the Operations
Clients are still going to get continuous service, particularly mobile and online banking features, when First Republic branches reopen on Monday, May 1. Marianne Lake and Jennifer Piepszak, co-CEOs of JPMorgan Chase Consumer and Community Banking (CCB), will lead the newly acquired First Republic operations.
JPMorgan Intends to Minimize Costs to Deposit Insurance Fund
Chairman and CEO of JPMorgan Chase, Jamie Dimon, said, “Our financial strength, capabilities and business model allowed us to develop a bid to execute the transaction in a way to minimize costs to the Deposit Insurance Fund.” He continued by saying:
“This acquisition modestly benefits our company overall, it is accretive to shareholders, it helps further advance our wealth strategy, and it is complementary to our existing franchise.”
JPMorgan Aims to Gain around $2.6B
JPMorgan Chase intends to recognise an upfront, one-time, post-tax gain of about $2.6 billion as a result of this transaction, which does not include the roughly $2.0 billion in post-tax reorganization charges expected over the eighteen months that follow. Furthermore, the deal is anticipated to be modestly EPS accretive and produce over five hundred million dollars in incremental net income per year.
Americans’ Interest in Crypto
This report follows the publication of a new JPMorgan Chase study at the end of last year, which found that over 13% of the Americans, or 43 million people, had possessed crypto at some point in their lives. However, in February of this year, the platform interviewed 835 participants, all of whom were institutional traders, as part of its seventh edition of the e-Trading Edit. 72% had no intentions of converting their financial holdings into cryptocurrencies this year.