Bank / Credit Union

JPMorgan Chase acquires First Republic Bank

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May 3, 2023

Regulators recently seized First Republic Bank and sold the majority of its assets to JPMorgan Chase. The bank lost $100 billion in deposits in March, as customers pulled out funds in the aftermath of the SVB crisis, according to an AP report.

Jamie Dimon, chairman and CEO of JPMorgan Chase, said he hopes the takeover will help alleviate concerns over the health of the U.S. banking system. During the 2008 crisis, JPMorgan Chase also acquired Washington Mutual in a similar deal organized by the government.

"Our government invited us and others to step up, and we did," Dimon told the AP.

Chase officially acquired $92 billion in deposits and $203 billion in loans and securities along with First Republic's 84 branches.

Dimon said "this part of the banking crisis is over" as other midsize banks have showed stable deposits and healthy profits.

Much like SBV and Signature Bank, First Republic Bank had a large amount of uninsured deposits above the $250,000 limit set by the FDIC.