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JPMorgan Chase Returns to a Familiar Role: Bank Rescuer
The lending giant’s shares jumped on the news that it is buying First Republic. But investors are watching to see if the deal ends the regional banking crisis.
https://www.nytimes.com/2023/05/01/business/dealbook/jpmorgan-first-republic-rescue.html

Jamie Dimon gets his pound of flesh.

JPMorgan prevailed in an auction that ran over the weekend, beating out other contenders including PNC Financial Services. As part of the deal, JPMorgan will assume the majority of First Republic’s assets, including $173 billion in loans and $30 billion in securities, as well as $92 billion in deposits.

That will spare the F.D.I.C. from a bigger rescue bill: It doesn’t need to worry about having to cover First Republic’s roughly $50 billion in uninsured deposits, since they will move over to JPMorgan. (The F.D.I.C. still estimates its insurance fund will take a $13 billion hit, and the agency reached a loss-sharing agreement with JPMorgan on some loans.)