JPMorgan rescues First Republic Bank in dramatic takeover

Image Credit - Getty Images Mon, May 1, 2023

[{"selector":"#anim-4b182b5b-378c-4b73-ac09-b6b250c05d26 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-32.20214832219106%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] [{"selector":"#anim-31cb6163-8a91-4ea9-b661-ac41bb2655a2","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-5eeb96b2-6117-4229-9fa8-e67ff0d206fd","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] First Republic Bank faced financial troubles due to bad investments and depositors withdrawing funds. Image Credit - Getty Images

[{"selector":"#anim-aebb7d6b-c2c7-4c1d-ac3c-905326977ef7","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-42b4b016-98b4-4d12-86d6-42afcec0257f","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-e0516ad7-ef66-437b-acad-9f5397f27dff [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(44.39697266003114%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] JPMorgan bought First Republic Bank and took on all assets and deposits, including uninsured ones. Image Credit - Getty Images

[{"selector":"#anim-e6e23399-99e9-4a95-ad7c-9189e607f330","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-338d0455-0224-4c36-94a3-769e6bf8f720","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-f787be09-5741-4b75-9eb4-0f6b2f75b3aa [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] The California Department of Financial Protection and Innovation made a statement regarding the purchase. Image Credit - Getty Images

[{"selector":"#anim-0af36f1e-500a-415d-92a9-3025619d5f4c","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-a60a68df-f4c3-4998-b913-96711d322b16","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-2820e1e1-346c-4e3e-9990-f5c00f964cec [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-23.797607224490452%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] JPMorgan would assume all deposits, including uninsured ones and most of First Republic's assets. Image Credit - Getty Images

[{"selector":"#anim-7668c0b5-37d5-48a0-a886-f2b081906d05","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-a969daa6-6835-4714-b1e1-970018a799c4","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-d9896ad7-131d-4039-a3c6-be3036763503 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-56.642859530255805%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] JPMorgan's acquisition makes it the largest bank in the US, which is contrary to government officials' previous efforts. Image Credit - Getty Images

[{"selector":"#anim-4a207503-ffb1-485b-a8f6-9ff656c17a6e","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-8716cbf6-1fd5-483b-acc9-16c6be17cf27","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-f3e3b53a-efe2-455f-8064-2ee9b17870a0 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-39.23630437569633%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] JPMorgan would have been unable to increase its deposit base due to its size and share of the US deposit base under normal US regulations. Image Credit - Getty Images

[{"selector":"#anim-cdb4585c-36dc-44c7-93c3-f31735e45dc6","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-29a632c1-e3f1-4597-bc28-989a5d831950","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-5bff74f8-0d14-484c-8e20-805741c2f0c0 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-35.93749994066849%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] The Biden administration and well-known Democratic lawmakers oppose consolidation in finance and other industries. Image Credit - Getty Images

[{"selector":"#anim-f0d3ad73-810e-419b-8120-ebed6ed1a26a","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-9ac85ce5-7d79-4cc5-8cc3-9c8a4cbd7719","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-5858697d-a931-400f-9a39-c7e088f5bbc7 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-42.91381834867221%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] First Republic Bank's acquisition is a significant exception to limiting the growth of big banks. Image Credit - Getty Images

[{"selector":"#anim-98657f6e-e604-4040-aa9b-f8168ac7b467","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-514ec1e3-d715-4e14-97ec-477598f36ed8","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-df4a555b-c218-49cd-97de-68f1ea1a4efa [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-47.458398482080206%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] JPMorgan's acquisition of First Republic Bank has far-reaching consequences for the US financial industry. Image Credit - Getty Images Read more