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Jamie Dimon Wins Again in First Republic Bank Deal

CEO used JPMorgan’s massive balance sheet to beat out smaller banks to buy troubled lender

JPMorgan Chase CEO Jamie Dimon played a key role in earlier efforts to rescue First Republic Bank. PHOTO: MARCO BELLO/REUTERS

JPMorgan Chase CEO Jamie Dimon played a key role in earlier efforts to rescue First Republic Bank. PHOTO: MARCO BELLO/REUTERS

America’s biggest bank just got even bigger

JPMorgan Chase JPM 2.14%increase; green up pointing triangle & Co.’s purchase of failed First Republic BankFRC -43.30%decrease; red down pointing triangle boosts the New York bank’s massive loan book and dominant deposit franchise. It gives the megabank a new crop of rich customers at a time when it is trying to expand its wealth-management operation. And it allows Chief Executive Jamie Dimon to once again play the role of industry savior

JPMorgan used its huge balance sheet to beat out smaller banks for First Republic, which was seized early Monday by the Federal Deposit Insurance Corp. First Republic collapsed after losing $100 billion in deposits in a March run that followed the implosion of fellow Bay Area lender Silicon Valley Bank.

PNC Financial Services Group Inc., Citizens Financial Group Inc. and Fifth Third Bancorp also submitted bids to the FDIC Sunday, people familiar with the matter said. The FDIC said there was “a highly competitive bidding process.” Its choice, the agency said, was consistent with its requirement to go with the offer that is projected to cost the deposit-insurance fund the least. 

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Author: Editors Desk

Source: WSJ:

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