Insights

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

exchange68September 13, 2024

0 0 1 minute read

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)

Analyst

James Van Straten

Former Lead Analyst at 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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