Jp Morgan saves First Republic bank
[ad_1]
It will be the giant J.P. Morgan Chase to purchase a large part of the assets of First Republic Bank, the Californian bank hit by the flight of its customers who are uncertain about the stability of the assets of the institution specializing in loans to wealthy families and real estate projects. In the US, current accounts are guaranteed up to $250,000.
Jp Morgan is indicated by several financial sources, including the Financial Times. The announcement and the details of the agreement will be finalized in the next few hours, but the American authorities are in a hurry to reassure the markets before the opening of the Wall Street Stock Exchange today (while many European markets will remain closed for the anniversary of May 1st) and avoid effects on the prices of the entire sector. It is the third medium-sized bank to fail since March (after Silicon Valley Bank and Signature bank), all affected by the increase in interest rates and the slowdown in US economic activity.
What happens to Italian banks if First Republic Bank fails
by Andrea Greco
US difficulties
First Republic was the 14th largest bank in the US at the end of 2022 with 229 billion assets, now it will be temporarily managed by the Deposit Guarantee Fund before being taken over by Jp Morgan. as confirmed by CEO Jamie Dimon to the FT: “The government has invited us and others to step forward, our financial strength and our business model has allowed us to build a purchase plan that will minimize costs for the Fdic”. There are about 93.5 billion deposits left. Buyer estimates approximately $2.6 billion gain from acquisition but over $2 billion in restructuring costs over next 18 months
[ad_2]
Source link
