JPMorgan Buys First Republic, After Regulators Seize Beleaguered Bank

Contact Your Elected Officials
The Epoch Times Header

First Republic Bank has been seized by the Federal Deposit Insurance Corp. (FDIC), which announced on May 1 that the beleaguered bank is being bought by JPMorgan Chase.

California financial regulators on May 1 ordered First Republic Bank closed, with the FDIC appointed as receiver.

โ€œTo protect depositors, the FDIC is entering into a purchase and assumption agreement with JPMorgan Chase Bank, National Association, Columbus, Ohio, to assume all of the deposits and substantially all of the assets of First Republic Bank,โ€ the FDIC stated on May 1.

The purchase and assumption agreement will see the FDIC contribute an estimated $13 billion from its deposit insurance fund to sweeten the deal, which was hammered out late April 30 and early May 1 after several banks submitted last-minute bids.

The Epoch Times hasnโ€™t been able to confirm other participants in the bidding, but the FDIC stated that JPMorganโ€™s offerโ€”which includes the assumption of all customer deposits and substantially all of its assetsโ€”fits the bill.

โ€œThe resolution of First Republic Bank involved a highly competitive bidding process and resulted in a transaction consistent with the least-cost requirements of the Federal Deposit Insurance Act,โ€ the FDIC stated.

This refers to the legal requirement for the FDIC to pick a form of โ€œresolutionโ€โ€”or orderly liquidation of a failing bankโ€”that results in the lowest possible cost to its deposit insurance fund and, indirectly, to customers of healthy banks that will eventually be encumbered by the cost of topping up the fund via a special assessment (or insurance premium) on banks.

The FDIC is also entering into a loss-share transaction with JPMorgan Chase on real estate loans purchased from First Republic, an arrangement meant to both minimize disruptions for loan customers and maximize recoveries.

โ€œThe FDIC as receiver and JPMorgan Chase Bank, National Association, will share in the losses and potential recoveries on the loans covered by the loss-share agreement,โ€ the FDIC stated.

First Republic Bank had approximately $229.1 billion in total assets and $103.9 billion in total deposits as of April 13.

By Tom Ozimek

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

Now Lawyers Are Looking for the Epstein List, Too!

So it turns out that when FBI Director Kash...

Remember Epsteinโ€™s โ€œLittle Black Booksโ€?

Image of Bill Clinton getting a massage from Jeffrey...

On the Major Leagueโ€™s periphery: A major trip through the minors

For Nick Dunn, the trek through the minors is a trifecta of physical, mental, and organizational hurdles filled with politics, roster volatility, and injuries.

Private Citizens are Now Looking into Epstein Client List

Most Americans have never felt so betrayed and confused by a president and his admin as they are by the Trump admin over the Epstein client list issue.

Peace In Ukraine Wonโ€™t End The Westโ€™s Hybrid War On Russia

The Westโ€™s Hybrid War on Russia to follow peace in Ukraine is inevitable due to neoconservatives and liberal-globalists in its decision-making ecosystem.

Hackers Target Appleโ€™s Mac Users With New Malware Hidden in Popular Apps

MacOS malware, ZuRu is targeting Apple users, embedding malicious code and a hacking tool into popular utilities used for remote connections and server management.

Fetterman Backs ICE, Calls Abolition Push โ€˜Outrageousโ€™

Sen. Fetterman voiced support for ICE, calling demands to dismantle the agency โ€œinappropriate and outrageous.โ€

DOJ Shuts Down Investigation on T-Mobile-UScellular Merger

DOJ no longer opposes the merger of T-Mobile and UScellular and has closed its investigation into the matter, the department said in a July 10 statement.

Trump Visits Central Texas, Epicenter of Catastrophic Flood That Killed More Than 120

President Trump landed in Central Texas for first-hand look at damage from devastating flood claiming the lives of more than 120 people statewide.

State Department Says Reorganization Plan to Move Ahead Quickly After Supreme Court Ruling

State Dept to reorganize plans following Supreme Court's allowing Trump admin to proceed with layoffs of fed workers and overhaul of federal agencies.

Trump Says US Has Struck Deal With NATO to Supply Weapons to Ukraine

President Donald Trump said on July 10 that he has struck a new deal with NATO under which the United States will supply weapons to Ukraine

RFK Jr. Bans Illegal Immigrants From Government-Funded Programs

HHS Sec. Robert F. Kennedy Jr. is rescinding a 1998 interpretation of a law that allowed illegal immigrants to access certain government-funded programs.

Rubio Set to Visit Malaysia for ASEAN Meetings Amid Tariff Tensions

A delegation including U.S. Sec. of State Marco Rubio will travel to Kuala Lumpur, Malaysia, for series of high-profile meetings between July 11 and 12.
spot_img

Related Articles