![]() In the wake of the takeove, the Treasury Department sought to reassure Americans about the country's financial system. "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." "Our government invited us and others to step up, and we did," he said. JPMorgan CEO Jamie Dimon touted the acquisition in a statement early Monday morning. "All depositors of First Republic Bank will become depositors of JPMorgan Chase Bank, National Association, and will have full access to all of their deposits." "First Republic Bank's 84 offices in eight states will reopen as branches of JPMorgan Chase Bank, National Association, today during normal business hours," the FDIC said in a statement. The California Department of Financial Protection and Innovation said Monday it had taken possession of First Republic and appointed the FDIC as receiver. By way of comparison, the SVB process cost the fund about $20 billion. The transaction will cost the FDIC's Deposit Insurance Fund an estimated $13 billion, according to the regulator. The weekend auction, which drew bids from JPMorgan Chase and PNC, as well as interest from other banks, was a "highly competitive bidding process," according to the FDIC. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower (Adds CFO’s comment in fourth paragraph, updates share price in fifth.Best Debt Consolidation Loans for Bad Credit are also reporting results Friday, with the trio offering an early look at how banks fared through a quarter that included regional banking tumult and ongoing rate hikes as the Fed sought to combat inflation. Trading and investment banking, while both down from a year earlier, came in ahead of analyst expectations, driven by beats in fixed-income trading and equity and debt underwriting.ĭimon said in the statement that JPMorgan expects “material capital changes with the finalization of Basel III and probable changes to come for bank liquidity,” but that “we will manage.” The firm did $1.8 billion of common stock buybacks in the second quarter. Overall, the provision for credit losses was $2.9 billion, with a net reserve build of $1.5 billion and $1.4 billion of net charge-offs. Results included a $1.2 billion reserve build related to First Republic. Labor markets have softened somewhat, but job growth remains strong.” “Consumer balance sheets remain healthy, and consumers are spending, albeit a little more slowly. economy continues to be resilient,” Chief Executive Officer Jamie Dimon said in the statement. ![]() in New York trading, pushing this year’s gain to 12%. But net interest income will probably be “substantially below this quarter’s run rate at some point in the future, as competition for deposits plays out,” Chief Financial Officer Jeremy Barnum said on a conference call. The New York-based company raised its full-year guidance for NII, saying it now expects $87 billion, excluding its trading business, up from the $84 billion it predicted at its investor day in May. The deal made the biggest US bank even bigger. First Republic was the fourth regional lender to collapse in a matter of weeks, and its failure was the second-largest in US history. JPMorgan agreed in May to acquire First Republic, beating out rivals in a government-led auction. The firm’s $41.3 billion in revenue beat analysts’ expectations, fueled by $21.8 billion in net interest income as well as a $2.7 billion gain on its First Republic purchase, according to a statement Friday. (Bloomberg) - JPMorgan Chase & Co.’s revenue soared to a record in the second quarter, boosted by the Federal Reserve’s interest-rate hikes and its acquisition of First Republic Bank. ![]()
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