First Republic Bank was seized by federal regulators and sold in an auction to JP Morgan Chase, following the revelation that customers had fled with more than $100 billion in deposits after the failure of Silicon Valley Bank in March. First Republic was a relationship-focused bank popular with startups and venture capital firms, and JP Morgan’s challenge will be to retain these qualities to hold on to this customer base. As part of the deal, JP Morgan will take on First Republic’s loan book and assume roughly $92 billion in deposits. The acquisition has raised concerns among some customers about whether JP Morgan will be able to maintain the same level of customer care and support going forward, but analysts believe that JP Morgan is likely to tread lightly through the integration process to avoid a mass customer exodus.
JP Morgan Completes Deal for First Republic Bank
ETF Newz Says:
287 ETF’s have exposure to JP Mogan.