Insider | Ryan Hogg | Apr 29, 2023

Image: Unsplash/Mariia Shalabaieva

JPMorgan Chase and PNC Financial Services Group are in the running to buy First Republic as the troubled lender stares down impending receivership, The Wall Street Journal reported.

• JPMorgan CEO Jamie Dimon is reportedly preparing to acquire First Republic Bank, which is facing receivership. The Federal Deposit Insurance Corporation (FDIC) has set a Sunday deadline for JPMorgan and PNC Financial Services Group to submit final bids for the troubled bank. Despite previously avoiding involvement in the rescue of Silicon Valley Bank, Dimon collaborated with the Federal Reserve to provide financial support to First Republic.
• The bank’s shares have plummeted, and efforts to save itself, including exploring options with investment bankers and implementing cost-cutting measures, have proved insufficient.  First Republic is worth 97% less than it did before Silicon Valley Bank collapsed last month.
  • The Federal Deposit Insurance Corporation (FDIC) is preparing to put First Republic in receivership, outlets including The Journal and Reuters reported Friday.
  • Bloomberg reported that JPMorgan and PNC had been given a Sunday deadline by the FDIC to submit final bids for the ailing bank.

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Jamie Dimon, CEO, JPMorgan:

“It is extremely important that we avoid knee-jerk, whack-a-mole or politically motivated responses that often result in achieving the opposite of what people intended,” Dimon said in a letter to shareholders in early April.