First Republic Bank Archives - The Minnesota Sun

America’s Biggest Bank Posts Another Massive Profit After Government-Assisted Acquisition

October 14, 2023 Minnesota Sun Staff

The U.S.’ largest bank had another huge quarter as profits soared after reaching a deal with federal regulators to buy the failed First Republic Bank in May.

JPMorgan Chase reported that, for its third quarter of 2023, net income was up by $13.2 billion, or 35%, but excluding assets acquired from First Republic, it was only up 24%, according to the banking giant’s third quarter earnings report. First Republic was one of a few banks that failed earlier this year after a bank run that shook depositors, which resulted in JPMorgan acquiring the bank after federal regulators seized its assets and auctioned them in order to maintain funds for depositors.

Largest U.S. Bank Notches Massive Profits Following Government-Assisted Acquisition

July 17, 2023July 16, 2023 Minnesota Sun Staff

The biggest bank in America announced huge profits Friday after previously striking a deal with federal regulators to buy the failed First Republic Bank.

JPMorgan Chase reported $14.5 billion in net income for the second quarter of 2023, which is up 67% compared to the previous quarter and 40% excluding First Republic, according to JPMorgan’s earnings release. First Republic failed in May after a bank run, requiring federal regulators to seize the bank and have other large banks bid on its sale, leading JPMorgan to acquire the bank and maintain funds for depositors.

The Biden Admin Just Made America’s Biggest Bank Even Bigger

May 3, 2023 Minnesota Sun Staff

Federal regulators sold recently failed regional lender First Republic Bank to JPMorgan Chase on Monday, enabling America’s largest bank to expand even more and spurring concerns about consolidation in the industry, economists told the Daily Caller News Foundation.

JPMorgan Chase agreed to take on all of First Republic’s $92 billion in deposits and is additionally purchasing the vast majority of the failed bank’s assets, including roughly $173 billion in loans and $30 billion in securities, according to a JPMorgan Chase press release. The giant had $3.7 trillion in assets and $2.4 trillion in deposits as of March 31.

Commentary: Another California Bank Fails After $100 Billion Run on Deposits and Rising Interest Rates Forces First Republic into FDIC Receivership

May 1, 2023 Admin

The Federal Deposit Insurance Corporation (FDIC) and the California Department of Financial Protection and Innovation put the $229.1 billion California-based First Republic Bank into receivership today on May 1, while the FDIC also entered into a “purchase and assumption agreement” with JP Morgan-Chase Bank for the nation’s largest bank to assume First Republic’s assets as well as its $103.9 billion of deposits.

Another one bites the dust.

Federal Regulators Seize, Sell Major Bank to JPMorgan Chase

May 1, 2023 Admin

Federal regulators took ownership of the First Republic Bank and sold it to JPMorgan Chase on Monday, marking the second-largest bank failure in U.S. history.

Biden Admin in Talks to Potentially Bail Out a Third Bank: Report

March 23, 2023 Minnesota Sun Staff

The U.S. government is considering backing a potential deal to rescue the struggling First Republic Bank, in a bid by U.S. officials and Wall Street executives to head off the chance of a third major bank failure, Bloomberg reported, citing people with knowledge of the discussions.

Wall Street investors have expressed an interest in helping stabilize the struggling San Francisco-based bank, which has been selling assets — which lost value amid the Federal Reserve’s aggressive campaign of interest rate hikes designed to combat inflation — to pay out a surge in customers pulling their funds from the bank, according to Bloomberg. While the extent of government aid has not yet been decided, the government could cover the cost of First Republic’s losses or offer liability protection to companies involved in a deal.