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Shares of JPMorgan and some of the other the largest U.S. banks rose on Monday, while those of mid-tier banks fell. [1/3] People walk past a First Republic Bank branch in San Francisco, California, U.S. April 28, 2023. "This is not the world financial crisis, this is not the savings and loan crisis. JPMorgan also entered into a loss-share agreement with the FDIC on single family, residential and commercial loans it bought, but will not take First Republic Bank's corporate debt or preferred stock. The failed bank's 84 offices in eight states will reopen as branches of JPMorgan Chase Bank from Monday, it added.

JPMorgan Chase & Co's (JPM.N) shares rose 3.1% to a near two-month high after the deal was announced earlier in the day. The S&P 500 Banks index (.SPXBK) gained 1.1%, while the KBW Regional Banking index (.KRX) shed 1.5%. Shares of regional banks PNC Financial (PNC.N) and Citizens Financial (CFG.N), that were among the bidders for First Republic, dropped 4.7% and 5.2%, respectively. "But regional banks will face higher cost of doing business for some time until confidence is rebuilt or there is a different regulatory scheme." Analysts now expect first-quarter earnings for S&P 500 companies to fall 1.9% from a year earlier, compared with a 5.1% fall expected at the start of April, according to Refinitiv data.

First Republic was one of the major casualties of the banking crisis triggered in March, when depositors fled en masse from some U.S. lenders to institutions such as JPMorgan that they thought were safer. [1/2] People walk past a First Republic Bank branch in San Francisco, California, U.S. April 28, 2023. JPMorgan has assumed all of the bank's deposits, it said, and will repay $25 billion of the $30 billion big banks deposited with First Republic in March. JPMorgan said it expected to achieve a one-time, post-tax gain of about $2.6 billion after the deal. The failed bank's 84 offices in eight states will reopen as branches of JPMorgan Chase Bank from Monday, it added.

The S&P 500 Banks index (.SPXBK) gained 1.4%. Big banks such as Bank of America (BAC.N) and Wells Fargo & Co (WFC.N) rose 0.3% and 2.8%, respectively. First Republic's woes kicked off last week on a bleak note, but upbeat earnings from Alphabet Inc (GOOGL.O), Microsoft Corp (MSFT.O) and Meta Platforms Inc (META.O) helped the benchmark S&P 500 (.SPX) notch its second consecutive month of gain on Friday. Analysts now expect first-quarter earnings for S&P 500 companies to fall 1.9% from a year earlier, compared with a 5.1% fall expected at the start of April, according to Refinitiv data. The S&P index recorded 21 new 52-week highs and no new low, while the Nasdaq recorded 48 new highs and 47 new lows.

☆ Explainer: Why First Republic Bank failed and what JPMorgan's deal means
▼ + stars: | 2023-05-01 | by ( Lawrence Delevingne | Thomson Reuters | Delevingne Works Primarily On Enterprise Stories Related To Finance. He Joined Reuters In | ) www.reuters.com time to read: +4 min

May 1 (Reuters) - The focus of the U.S. regional banking crisis turned on First Republic Bank in late March after the wealthy clients it courted to fuel its breakneck growth began pulling their deposits. The failure of First Republic, which said last week it had first-quarter outflows of more than $100 billion, marks the demise of a third major U.S. bank in just two months, after Silicon Valley Bank and Signature Bank . Merrill Lynch acquired the bank in 2007 but First Republic was listed on the stock market again in 2010 after being sold by Merrill's new owner, Bank of America. WHAT THE JPMORGAN DEAL MEANSJPMorgan said that under its deal First Republic's 84 offices in eight U.S. states would reopen as branches of JPMorgan Chase Bank from Monday, so customers of the failed bank will be dealing with the giant financial group instead. The biggest U.S. bank will get even bigger as a result of the deal for most of First Republic's assets.

☆ Factbox: JPMorgan's deal for collapsed First Republic explained
▼ + stars: | 2023-05-01 | by ( ) www.reuters.com time to read: +2 min

May 1 (Reuters) - JPMorgan Chase & Co (JPM.N) will buy most of First Republic Bank's (FRC.N) assets in a last-ditch rescue led by U.S. regulators, marking the third major U.S. institution to fail in two months. The deal, announced early on Monday as regulators seized First Republic, will see the largest U.S. bank acquire $173 billion of loans, $30 billion of securities and $92 billion of deposits of the failed lender. Highlights from a presentation to investors by JPMorgan:Key terms:* JPMorgan Chase will pay $10.6 billion to the Federal Deposit Insurance Corp (FDIC)* Will not assume First Republic's corporate debt or preferred stock* FDIC to provide loss share agreements with respect to most acquired loans* JPMorgan will repay $25 billion of deposits large U.S. banks made in First Republic in March and eliminate the $5 billion deposit it made on consolidation* Deal has received all regulatory approvals and has closedTransaction assumptions:* JPMorgan expects one-time gain of $2.6 billion post-tax at closing, not including expected restructuring costs of $2 billion over the course of 2023 and 2024* Estimated to add roughly $500 million to net income and be accretive to tangible book value per share* Says FDIC loss share agreements reduce risk weighting on covered loansPlan for integration:* First Republic branches and offices will open as normal* Plans to convert certain First Republic branches into new J.P. Morgan wealth centers* Failed lender's loan portfolios will be transitioned to JPMorgan Chase's business segments and technology systems* First Republic's private wealth management platform will become part of J.P. Morgan AdvisorsDue diligence:* JPMorgan says over 800 employees participated in the due diligence* Conducted comprehensive data room review including loan and deposit tapes* JPMorgan says loan portfolio marks supported by due diligence processReporting by Manya Saini in Bengaluru; Editing by Sriraj KalluvilaOur Standards: The Thomson Reuters Trust Principles.

STEPPING UPA security guard stands outside a First Republic Bank branch in San Francisco, California, U.S. April 28, 2023. The FDIC estimated in a statement that the cost to the Deposit Insurance Fund (DIF) would be about $13 billion. JPMorgan has assumed all of the bank's deposits, it said, and will repay $25 billion of the $30 billion big banks deposited with First Republic in March. New York-based JPMorgan will take on $173 billion of loans, $30 billion of securities and $92 billion of deposits. "Our government invited us and others to step up, and we did," said Jamie Dimon, JPMorgan Chairman and CEO.

☆ Futures muted as Fed caution sets in, JPMorgan to buy First Republic
▼ + stars: | 2023-05-01 | by ( ) www.reuters.com time to read: +4 min

The rescue comes less than two months after a deposit flight from U.S. lenders Silicon Valley Bank and Signature Bank forced the Fed to step in with emergency measures to stabilize markets. Apple Inc (AAPL.O) is set to report later this week. Markets should take today's news in stride knowing that the repeated bank failures should now have the Fed back on its heels and defanged moving forward." ET, Dow e-minis were down 14 points, or 0.04%, S&P 500 e-minis were down 3.75 points, or 0.09%, and Nasdaq 100 e-minis were down 13.5 points, or 0.1%. Reporting by Ankika Biswas in Bengaluru; Editing by Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

May 1 (Reuters) - JPMorgan Chase & Co (JPM.N) will buy most of First Republic Bank's (FRC.N) assets in a last-ditch rescue led by U.S. regulators, marking the third major U.S. institution to fail in two months. First Republic Bank shares tumbled 43.3% in premarket trading. The FDIC estimated in a statement that the cost to the Deposit Insurance Fund would be about $13 billion. "Our government invited us and others to step up, and we did," said Jamie Dimon, Chairman and CEO of JPMorgan Chase. The failed bank's 84 offices in eight states will reopen as branches of JPMorgan Chase Bank from Monday, according to the JPMorgan statement.

☆ JP Morgan to buy First Republic's assets and assume deposits
▼ + stars: | 2023-05-01 | by ( ) www.reuters.com time to read: +3 min

The banking giant will take $173 billion of loans and about $30 billion of securities of First Republic Bank including $92 billion of deposits, JPMorgan said in a statement. First Republic Bank shares tumbled 36% in premarket trading. The FDIC estimated in a statement that the cost to the Deposit Insurance Fund would be about $13 billion. "Our government invited us and others to step up, and we did," said Jamie Dimon, Chairman and CEO of JPMorgan Chase. The failed bank's 84 offices in eight states will reopen as branches of JPMorgan Chase Bank from Monday, according to the JPMorgan statement.

☆ First Republic deal boosts our banks. Danaher gets a confidence vote. Here are our takes on the news
▼ + stars: | 2023-05-01 | by ( Kevin Stankiewicz | ) www.cnbc.com time to read: +6 min

That deposit money will be repaid to the participating banks, which include Club holdings Wells Fargo (WFC) and Morgan Stanley (MS). Wells Fargo deposited $5 billion , while Morgan Stanley contributed $2.5 billion. The Club's take: Morgan Stanley and Wells Fargo are stocks worth buying here, Jim Cramer said during Monday's "Morning Meeting." One potential drag on Morgan Stanley shares is JPMorgan's wealth management operations are strengthened by its First Republic acquisition. A man walks past a First Republic bank in Manhattan on May 01, 2023 in New York City.

☆ Watch CNBC's full interview with Apollo Global Management CEO Marc Rowan
▼ + stars: | 2023-05-01 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Apollo Global Management CEO Marc RowanApollo Global Management CEO Marc Rowan joins David Faber on 'Squawk on the Street' to discuss the fallout of First Republic's banking failure, Apollo's performance, recession prediction, and more.

☆ JPMorgan takes over First Republic after it's seized by Californian financial regulator
▼ + stars: | 2023-05-01 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

A view of the First Republic Bank logo at the Park Avenue location, in New York City, March 10, 2023. The Californian financial regulator took possession of First Republic Monday, resulting in the third failure of an American bank since March, after a last-ditch effort to persuade rival lenders to keep the ailing bank afloat failed. JPMorgan Chase acquired all of First Republic's deposits, including uninsured deposits, and a "substantial majority of assets," according to a release. "As part of the transaction, First Republic Bank's 84 offices in eight states will reopen as branches of JPMorgan Chase Bank, National Association, today during normal business hours," the FDIC said in a statement. "All depositors of First Republic Bank will become depositors of JPMorgan Chase Bank, National Association, and will have full access to all of their deposits."

☆ Buy the bitcoin pullback as crypto will have more time to shine later this year, Bernstein says
▼ + stars: | 2023-05-01 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +1 min

"Bitcoin and the crypto financial system were made exactly for times like today," he said in a note Monday, highlighting the "breakdown of traditional financial systems" and "first principle questions on the fractional reserve business model of banks." "As the narrative towards a weaker dollar picks up, we believe bitcoin will emerge again as a faster horse than gold," Chhugani said. "Further, we believe it will also unleash a new crypto cycle, bringing about a new wave of innovation in crypto-based decentralized financial systems. Furthermore, the regulatory argument against crypto in the U.S. is weakening, according to the analyst, as Europe and Hong Kong take more progressive approaches. BTC.CM= YTD mountain Bitcoin (BTC) this year Bitcoin fell about 4% Monday, according to Coin Metrics, after closing out its fourth positive month in a row with a 3% gain.

☆ The Fed's next move: Pause, pivot or hike?
▼ + stars: | 2023-05-01 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe Fed's next move: Pause, pivot or hike? CNBC's Leslie Picker, Steve Liesman, and Mike Santoli along with The Wall Street Journal's Gunjan Banerji joins 'Power Lunch' to discuss the Fed's upcoming rate decision, First Republic's sale to JPMorgan, and ongoing bank sector woes.

☆ Here's what's next for bank stocks after the failure of First Republic
▼ + stars: | 2023-05-01 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +4 min

First Republic's demise was the third regional bank failure since early March, when Silicon Valley Bank and Signature Bank folded within days of each other. There is cautious optimism on Wall Street that First Republic will be the last failure of this period. However, reports from other regional banks weren't nearly as dire, with many reporting that deposits had stabilized and were growing again. However, the failure of First Republic could cause some more turbulence, at least in the short-term, for both deposits and bank stocks. "We don't believe that regional banks are completely out of the woods," Wolfe Research chief investment strategist Chris Senyek said in a note to clients on Monday.

☆ First Republic collapse sparks sector-wide regional bank shares sell-off
▼ + stars: | 2023-05-01 | by ( ) www.reuters.com time to read: +2 min

[1/2] The logo of PNC Bank, a subsidiary of PNC Financial Services Group, is seen on the window of a branch in Washington, U.S. April 30, 2023. REUTERS/Ashraf FahimMay 1 (Reuters) - Shares of regional lenders fell in morning trading on Monday following the collapse of First Republic Bank (FRC.N), the third major casualty of the biggest crisis to hit the U.S. banking sector since 2008. Among individual movers, Citizens Financial Group (CFG.N), PNC Financial Services Group (PNC.N), Truist Financial Corp (TFC.N) and U.S. Bancorp (USB.N) fell between 2.2% and 7%. While investors digested the quick deal for First Republic's assets with a pinch of salt, the regulator-engineered rescue effort sparked a sell-off in the mid-cap bank sector. Global banking has been rocked by the closure of Silicon Valley Bank and Signature Bank in March.

☆ Jamie Dimon says JPMorgan rescued First Republic because the government asked his bank 'to step up, and we did'
▼ + stars: | 2023-05-01 | by ( Ryan Hogg | ) www.businessinsider.com time to read: +3 min

Jamie Dimon says JPMorgan bought First Republic after the US government asked it to "step up." Jamie Dimon said JPMorgan's acquisition of First Republic came after the US government asked the bank to "step up" in a deal that will "modestly" benefit America's biggest bank. "Our government invited us and others to step up, and we did," JPMorgan CEO Dimon said in a press release. In addition to most of First Republic's deposits, JPMorgan will pick up about $173 billion in loans and about $30 million of securities. First Republic's shares slumped more than 40% to $2.10 in pre-market trading, while JPMorgan rose 2.5% to $141.70.

☆ Why First Republic failed, and what it means for the rest of the banking industry
▼ + stars: | 2023-05-01 | by ( Ryan Hogg | ) www.businessinsider.com time to read: +4 min

First Republic's failure is a stark reminder that the banking crisis is far from over. But despite a speedy takeover by JPMorgan, First Republic's failure shows the banking crisis is far from over. At the end of 2022, two-thirds of First Republic's deposits were uninsured. When SVB and Signature Bank failed, these wealthy customers fled First Republic in droves for fear of losing their cash. The combined failure of SVB, Signature and First Republic is a reminder of the problems affecting the banking system.

☆ Don't let the patriotic talk fool you. Here are 5 ways JPMorgan stands to win from buying First Republic Bank.
▼ + stars: | 2023-05-01 | by ( Emmalyse Brownstein | Carter Johnson | ) www.businessinsider.com time to read: +8 min

JPMorgan on Monday morning emerged as the white-knight buyer of First Republic Bank. More wealth advisors for high-net-worth clientsJPMorgan's wealth management ambitions will also get a boost from its purchase of First Republic. The smaller bank has about 150 high-end advisors who will join JPMorgan's brokerage business unit, JPMorgan Advisors. "If they can retain the wealth advisors and not lose too many more, I think it will be very advantageous. "This helps bring the bank crisis phase to the home stretch in our view," wrote Wells Fargo's Mayo.

☆ Sethi: The resolution of First Republic takes away the uncertainty for the market
▼ + stars: | 2023-05-01 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSethi: The resolution of First Republic takes away the uncertainty for the marketDCLA managing partner Sarat Sethi discusses whether there will be a ripple effect from First Republic's failure on the broader market, and where investors may seek some opportunity in the near to mid-term.

☆ Apollo CEO Mark Rowan on First Republic fallout: The business of regional banking will change
▼ + stars: | 2023-05-01 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailApollo CEO Mark Rowan on First Republic fallout: The business of regional banking will changeApollo Global Management CEO Marc Rowan joins David Faber on 'Squawk on the Street' to discuss the fallout of First Republic's banking failure, Apollo's performance, recession prediction, and more.

☆ Uzbek leader wins referendum on extending powers
▼ + stars: | 2023-05-01 | by ( ) www.reuters.com time to read: +1 min

TASHKENT, May 1 (Reuters) - Uzbekistan has passed a package of constitutional amendments in a referendum, preliminary data showed on Monday, which will allow President Shavkat Mirziyoyev to run for two more seven-year terms when his current one ends in 2026. The reform, passed with 90.21% of Sunday's vote, resets Mirziyoyev's term count, while promising the Central Asian nation's citizens greater social and legal protections. Mirziyoyev, 65, has opened up the former Soviet republic's economy, greatly improved ties with the West, and curbed the powers of security services whose dominance had in previous decades turned the country of 35 million into a police state. Although Tashkent's Western partners are unlikely to approve of the extension of presidential powers, Uzbekistan risks little given the West is seeking support from ex-Soviet nations in its efforts to isolate Russia over its war in Ukraine. Reporting by Mukhammadsharif Mamatkulov, Writing by Olzhas Auyezov, editing by Ed OsmondOur Standards: The Thomson Reuters Trust Principles.

☆ JPMorgan is buying First Republic Bank after it was taken over by regulators
▼ + stars: | 2023-05-01 | by ( Kaja Whitehouse | Huileng Tan | ) www.businessinsider.com time to read: +5 min

First Republic Bank was put into receivership by regulators early Monday. First Republic Bank will be taken over by JPMorgan after being seized by regulators, marking the third regional bank to be taken over by federal regulators following a consumer panic that took down Silicon Valley Bank in March. The FDIC said early Monday that JPMorgan submitted a bid for all of First Republic's deposits of $103.9 billion. As part of the transaction, First Republic Bank's 84 offices in eight states will reopen as branches of JPMorgan on Monday. JPMorgan is assuming all of First Republic Bank's deposits — including uninsured ones — as well as most of its assets, said FDIC and JPMorgan in their statements.

NEW YORK, April 30 (Reuters) - PNC Financial Services Group (PNC.N) and JPMorgan Chase & Co (JPM.N) were among banks set to submit final bids for First Republic Bank (FRC.N) by midday Sunday in an auction being run by U.S. regulators, sources familiar with the matter said. Citizens Financial Group Inc (CFG.N) was another bidder in the final phase of the process, according to one of the sources familiar with the matter. Guggenheim Securities is advising the FDIC, two sources familiar with the matter said on Saturday. Citizens Financial Group Inc (CFG.N) was another bidder vying for the bank, according to sources familiar with the matter on Saturday. But fearing further bank runs, regulators took the exceptional step of insuring all deposits at both Silicon Valley Bank and Signature.

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