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JP Morgan and First Republic Bank deal: a step towards financial monopoly?

Banking consolidation continues: JP Morgan acquires First Republic Bank

James Van Straten
May. 1, 2023 at 2:55 pm UTC
1 min read
Updated: May. 1, 2023 at 2:55 pm UTC

Quick Take

  • According to the Kobessi letter, JP Morgan said its acquisition of First Republic would generate a one-time gain of $2.6 billion.
  • Not only that, JP Morgan also expects over $500 million in profit per year from the acquisition.
  • First Republic Bank is the second largest bank to have failed in the U.S. It is now behind Washington Mutual.
  • The FDIC estimated that the cost to the deposit insurance fund would be about $13 billion.
  • However, JP Morgan should be ineligible to acquire FRB under U.S. regulation as they have already amassed more than 10% of its nationwide deposits. Authorities have made an exemption.
Biggest Bank failures: (Source: Bloomberg)
Biggest Bank failures: (Source: Bloomberg)
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James Van Straten
James Van Straten
Former Lead Analyst CryptoSlate

James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century's paramount invention.

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