JPMorgan Takes Over First Republic Bank
Regulators seized First Republic Bank's assets and sold them to JPMorgan Chase in an agreement to resolve the biggest U.S. banking failure since 2008.
JPMorgan Chase & Co. would receive all the deposits of the failing bank and "a substantial majority of assets".
JPMorgan will receive about $92 billion of deposits, including the $30 billion it and other large bankers put into First Republic last month.
JPMorgan is taking on $30 billion in securities and $173 billion in loans as well
The FDIC has agreed to absorb the majority of losses that JPMorgan will incur on commercial and mortgage loans, as well as providing it with a credit line of $50 billion.
JPMorgan will gain over $500 million in profit annually from the acquisition. JPMorgan announced that it would be paying $10.6 billion to the FDIC.
Shares of First Republic had lost 97% while the shares of JPMorgan rose 3.3% at midday.