c. B. Morgan Chase have agreed with United State To acquire most of the assets of First Republic Bank (FRB). The operation was negotiated “in extreme cases” over this weekend.
“To protect depositors, the FDIC will enter into an acquisition agreement with JPMorgan Chase Bank, National Association, Columbus, Ohio, to assume all deposits and all assets of First Republic Bank.” .
In this regard, the independent US Federal Agency recognized that “L Bank failure is inevitable In a dynamic and innovative financial system,” though, “they must plan for those bankruptcies focusing on strong capital requirements and an effective resolution framework.” Ending the culture of saving the countrythat privatize profits while socializing losses.”
in this way, JPMorgan will bear all depositsincluding the uninsured and most assets,” the California Department of Financial Protection and Innovation (DFPI) explained.
Jamie Dimon said: “The government asked us to accelerate and we did. Our financial strength, capabilities and business model allowed us to make an offer to execute the transaction in a way that minimizes costs to the Deposit Insurance Fund.” , CEO of JPMorgan Corporation.
Specifically, the operation was closed with the acquisition of 173,000 million in loans and 30,000 million in securities.
The third US bank to fail
A few days ago a financial institution in California It lost 97% of its value on the stock exchange in recent weeks, which means deposit losses of $100,000,000,000. This collapse triggered alerts of a new infection in the US financial sector and, by extension, to the rest of the world.
A group of banks in the country tried to save the entity a few weeks ago with 30 thousand million. The bailout was intended to prevent that bank from continuing the path taken by Silicon Valley Bank and Signature Bank, two entities that authorities had shut down for fear of “systemic risk.”