(May 1): JPMorgan Chase & Co won the bidding to acquire First Republic Bank in an emergency government-led intervention, after private rescue efforts failed to fill a hole on the troubled lender’s balance sheet and customers yanked their deposits. JPMorgan will take over First Republic’s assets, including about US$173 billion (RM771.67 billion) of loans and US$30 billion of securities, as well as US$92 billion in deposits. The transaction makes JPMorgan, the nation’s largest bank, even more massive — an outcome government officials have taken pains to avoid in the past. The bank advised its smaller rival in its attempt to find strategic alternatives, and Dimon was key in marshalling bank executives to inject the US$30 billion in deposits. The bank has been bought and sold several times over the years, with Merrill Lynch & Co paying US$1.8 billion to acquire First Republic in 2007.

Source: The Edge Markets May 02, 2023 03:32 UTC