Banking

JPMorgan acquire First Republic Bank in emergency US-government led rescue

The transaction makes JPMorgan, the nation’s largest bank, even larger — an outcome US government officials have taken pains to avoid in the past

JPMorgan Chief Executive Officer Jamie Dimon: “Our financial strength, capabilities and business model allowed us to develop a bid to execute the transaction in a way to minimize costs to the Deposit Insurance Fund.” Picture: Getty

JPMorgan Chase won the bidding to acquire First Republic Bank in an emergency government-led intervention after private rescue efforts failed to fill a hole on the troubled lender’s balance sheet and customers withdrew their deposits.

JPMorgan will take over First Republic’s assets, including about $173 billion of loans and $30 billion of securities, as well as $92 billion in deposits. JPMorgan and the Federal Deposit Insurance Corp., which orchestrated the sale, agreed to share the ...