JPMorgan Chase CEO Jamie Dimon said the crisis that led to the collapse of three major regional U.S. banks in recent weeks is largely over after the takeover of First Republic Bank went through. He said it would "almost solve all the problems" and that part of the crisis is over.
New York-based JPMorgan Chase announced earlier Monday that it had acquired substantially all of First Republic Bank's assets from the Federal Deposit Insurance Corporation (FDIC) and assumed its deposits and certain other liabilities. "Our government invited us and others to step up, and we did," Jamie Dimon said in a statement. "This acquisition is a positive for our company as a whole, a positive for our shareholders, helps further advance our wealth strategy, and is complementary to our existing franchise."
As previously reported, JPMorgan Chase said on Monday that it had obtained approval from all regulators and the transaction (to acquire First Republic Bank) had been completed. JPMorgan Chase said it would pay $10.6 billion to the Federal Deposit Insurance Corporation to acquire First Republic Bank. In addition, JPMorgan Chase will repay $25 billion in deposits from large U.S. banks and cancel $5 billion in deposits owed to JPMorgan Chase by (First Republic Bank). The Federal Deposit Insurance Corporation will provide it with $50 billion in 5-year fixed-rate financing. (CNBC)