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JPMorgan Chase CEO Claims US Banking Crisis 'Over' After First Republic Bank Buyout
JPMorgan Chase CEO Claims US Banking Crisis 'Over' After First Republic Bank Buyout
Sputnik Africa
JPMorgan Chase CEO Jamie Dimon detailed shortly after news broke on Monday of First Republic's buyout that the current banking crisis was just about done.
2023-05-02T03:50+0200
2023-05-02T03:50+0200
2023-08-03T10:44+0200
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us banking crisis
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JPMorgan Chase CEO Jamie Dimon detailed shortly after news broke on Monday of First Republic's buyout that the current banking crisis was just about done.Dimon admitted to analysts during a call that there "are only so many banks that were offsides" in the manner that First Republic was left. JPMorgan earlier announced they were acquiring First Republic after winning an auction over the weekend, with the lender stating they were acquiring nearly all of First Republic’s deposits and most of its assets after it was momentarily seized by the FDIC.The FDIC will share losses with JPMorgan on First Republic's loans as part of this weekend’s deal, and will receive $50 billion in financing from the FDIC.In March, two midsized banks - Silicon Valley Bank and Signature Bank - collapsed and caused panic to spread among investors, who then fled to giants like JPMorgan. JPMorgan Chase is a global bank with assets that range in the $2.6 trillion range, according to their site.In response to growing concern over the latest banking buyout, White House Press Secretary Karine Jean-Pierre underscored that the current financial setbacks were "very different" from the 2008 crisis. Stephen Kelly, a senior researcher at the Yale Program on Financial Stability, reiterated those claims made by the White House."This is the last stages of that initial panic. First Republic’s problems started as a result of SVB and Signature," said Kelly. "This isn’t the story of 2008, where one bank went down and investors focused on the next biggest bank, which would wobble."
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JPMorgan Chase CEO Claims US Banking Crisis 'Over' After First Republic Bank Buyout
03:50 02.05.2023 (Updated: 10:44 03.08.2023) The buyout resolves just one of the latest US banking failures since the start of the year following the Silicon Valley Bank collapse. The Federal Deposit Insurance Corporation (FDIC) briefly took over First Republic Bank and sold it JPMorgan Chase on Monday after it lost about $100 billion worth of deposits since the start of 2023.
JPMorgan Chase CEO Jamie Dimon detailed shortly after news broke on Monday of First Republic's buyout that the current banking crisis was just about done.
Dimon admitted to analysts during a call that there "are only so many banks that were offsides" in the manner that First Republic was left.
"There may be another smaller one, but this pretty much resolves them all," Dimon said. “This part of the crisis is over.”
JPMorgan earlier announced they were acquiring First Republic after winning an auction over the weekend, with the lender stating they were acquiring nearly all of First Republic’s deposits and most of its assets after it was momentarily seized by the FDIC.
The FDIC will share losses with JPMorgan on First Republic's loans as part of this weekend’s deal, and will receive $50 billion in financing from the FDIC.
In March, two midsized banks - Silicon Valley Bank and Signature Bank - collapsed and caused panic to spread among investors, who then fled to giants like JPMorgan. JPMorgan Chase is a global bank with assets that range in the $2.6 trillion range, according to their
site.
In response to growing concern over the latest banking buyout, White House Press Secretary Karine Jean-Pierre underscored that the current financial setbacks were "very different" from the 2008 crisis.
"This is not 2008," the press secretary stressed to reporters when asked for comment on the development and its impact on the First Republic failure.
Stephen Kelly, a senior researcher at the Yale Program on Financial Stability, reiterated those claims made by the White House.
"This is the last stages of that initial panic. First Republic’s problems started as a result of SVB and Signature," said Kelly. "This isn’t the story of 2008, where one bank went down and investors focused on the next biggest bank, which would wobble."
