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☆ It's JPMorgan to the rescue
▼ + stars: | 2023-05-01 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +4 min

JPMorgan Chase is buying First Republic Bank after it was put into receivership from regulators earlier today. It's the third US bank to fail since March, following Silicon Valley Bank and Signature Bank. The deal represents another chance for JPMorgan Chase CEO Jamie Dimon to come to the rescue. Why its Wall Street rivals could follow suit. Read more on the report in The Wall Street Journal.

☆ 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.

☆ I'm a retired baby boomer who thinks Gen Z and millennial workers are smart to push back on return-to-office mandates
▼ + stars: | 2023-05-01 | by ( Rebecca Knight | ) www.businessinsider.com time to read: +5 min

Many Gen Z and millennial workers are rejecting old corporate rules and return-to-office mandates. But one who shared his thoughts on Gen Zers with Insider says he's cheering on younger generations. There might also be a sense that since we boomers paid our dues, we see Gen Z and millennial workers — particularly the ones forming unions and pushing back against corporate rules — as entitled. Now that I'm sitting on the sidelines of the workforce, I'm cheering on these younger generations with all my might. And I sympathize with my Gen Z and millennial counterparts who have decades of work ahead of them.

☆ 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.

☆ Jamie Dimon says 'this part of the crisis is over' after JPMorgan Chase buys First Republic
▼ + stars: | 2023-05-01 | by ( Hugh Son | ) www.cnbc.com time to read: +2 min

Jamie Dimon, chairman and chief executive officer of JPMorgan Chase & Co., during a Bloomberg Television interview at the JPMorgan Global High Yield and Leveraged Finance Conference in Miami, Florida, US, on Monday, March 6, 2023. The crisis that led to the downfall of three regional U.S. banks in recent weeks is largely over after the resolution of First Republic , according to JPMorgan Chase CEO Jamie Dimon. JPMorgan emerged as the winner of a weekend auction for First Republic after regulators decided that time had run out on a private sector solution. In the wake of the sudden collapse in March of Silicon Valley Bank and Signature Bank, investors have punished other lenders that had similar characteristics to SVB. Shares of regional banks including PacWest and Citizens Financial slumped in premarket trading.

☆ 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.

New York CNN —The collapse of First Republic Bank is unlikely to worsen the US economic outlook, JPMorgan CEO Jamie Dimon said Monday. Dimon told CNN’s Poppy Harlow early last month that the stress in the banking system had increased the odds of a US recession. The bank had $100 billion in those deposits withdrawn from the bank during the first quarter, it reported last week. “The American banking system is extraordinarily sound,” he said. But he agreed with Dimon that the seizure of First Republic, however, does not shift those forecasts, he told CNN Monday.

☆ 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."

☆ FDIC sees merits of increasing backstop for business accounts
▼ + stars: | 2023-05-01 | by ( ) www.cnbc.com time to read: +3 min

A key U.S. banking regulator on Monday laid out a range of options for reforming the federal deposit insurance system and concluded that significantly increasing the backstop for bank accounts used for business purposes was the "most promising." In the wake of March's lightning-fast bank failures, expanding coverage for accounts used to cover payroll, invoices and other large business transactions has emerged as the Federal Deposit Insurance Corp's preferred route for balancing financial stability and depositor protection, relative to its cost. Keeping the current system, where coverage is limited to $250,000 per-person per-bank, was the third option considered. The FDIC's deposit insurance fund helps to fulfill the agency's guarantee of bank deposits up to $250,000 per person. In the event an insured bank fails, the FDIC uses the deposit insurance fund to pay back customers who maintained accounts under the limit.

☆ Stock futures are down slightly as investors prepare for Fed meeting: Live updates
▼ + stars: | 2023-05-01 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

Stock futures are modestly lower Monday night as investors prepared for the Federal Reserve's May policy meeting to kick off. But the muted activity seen in Monday's regular session is typical in the days leading up to a Fed policy meeting, according to Jamie Cox, managing partner for Harris Financial Group. Members of the Federal Open Market Committee will begin their policy meeting Tuesday, with an announcement on interest rates and a subsequent press conference expected Wednesday. "Markets just sit around and wait until the Fed meeting begins, and then the positioning starts," Cox said. Beyond the start of the Fed meeting Tuesday, investors will watch for data on job openings, factory orders and light vehicle sales on the economic front.

☆ Jamie Dimon bails out First Republic – and FDIC
▼ + stars: | 2023-05-01 | by ( Lauren Silva Laughlin | ) www.reuters.com time to read: +3 min

In the wee hours of Monday morning, however, he agreed to take mid-sized First Republic Bank (FRC.N) out of receivership from the Federal Deposit Insurance Corp. The bank acquires nearly $229 billion of assets and absorbs some $173 billion in loans at a roughly 13% discount to book values. After taxes and paying the FDIC $10.6 billion, JPMorgan should get a $2.6 billion boost before integration costs. The agency will share losses of up to 80% on the large majority of First Republic’s loan book. There’s also a $50 billion loan from the FDIC at specific terms that have not been disclosed so far.

☆ A Timeline of How the Banking Crisis Has Unfolded
▼ + stars: | 2023-05-01 | by ( Madeleine Ngo | ) www.nytimes.com time to read: +9 min

March 9Gregory Becker, the chief executive of Silicon Valley Bank, urged venture capital firms to remain calm on a conference call. March 10In the biggest bank failure since the 2008 financial crisis, Silicon Valley Bank collapsed after a run on deposits . Regional bank stocks plunged after the unexpected seizure of Silicon Valley Bank and Signature Bank , with shares of First Republic tumbling 60 percent. The Treasury secretary believed the actions by the private sector would help underscore confidence in the stability of the banking system. April 28The Fed released a report faulting itself for failing to “take forceful enough action” ahead of Silicon Valley Bank’s collapse.

☆ 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.

Several analysts, industry executives and investors said they believe the March banking crisis has set conditions for a long-predicted round of industry consolidation to finally happen. We've also been approached by some big bulge bracket banks that are also looking to acquire the regional banks." Some bank deals have been stuck for months waiting for approvals. And Monday's deal shows larger banks with deeper pockets are better placed than mid-sized lenders, according to Jefferies analysts. "This may have precluded other regional bank bidders from making the math work as well as it does for JPM," they wrote.

☆ Why First Republic Bank may not be the end of the crisis
▼ + stars: | 2023-05-01 | by ( Allison Morrow | ) edition.cnn.com time to read: +5 min

New York CNN —After a six-week spiral, First Republic bank finally collapsed in the wee hours of Monday morning. Everyone on Wall Street appears to be drinking from the same punch bowl as Jamie Dimon, who framed the sale as a bookend to the crisis. To his mind, the sale just makes JPMorgan, already the nation’s largest bank, even bigger, and the power of the biggest Wall Street banks more concentrated. That idea got an extra boost on Monday, when the FDIC itself released a report advocating for an increase in the deposit insurance limit for business payment accounts. “You can think of federal deposit insurance as being a bit like nuclear weapons,” he said.

Lawmakers and regulators have spent years erecting laws and rules meant to limit the power and size of the largest U.S. banks. But those efforts were cast aside in a frantic late-night effort by government officials to contain a banking crisis by seizing and selling First Republic Bank to the country’s biggest bank, JPMorgan Chase. The F.D.I.C.’s decision appears, for now, to have quelled nearly two months of simmering turmoil in the banking sector that followed the sudden collapse of Silicon Valley Bank and Signature Bank in early March. “This part of the crisis is over,” Jamie Dimon, JPMorgan’s chief executive, told analysts on Monday in a conference call to discuss the acquisition. For Mr. Dimon, it was a reprise of his role in the 2008 financial crisis when JPMorgan acquired Bear Stearns and Washington Mutual at the behest of federal regulators.

☆ De-dollarization and global reserves dominance, explained by a top currency economist and the inventor of the 'dollar smile' theory
▼ + stars: | 2023-04-29 | by ( Phil Rosen | ) www.businessinsider.com time to read: +5 min

Stephen Jen, CEO of Eurizon SLJ Eurizon SLJStephen Jen is a leading economist, the cofounder and CEO of Eurizon SLJ, and inventor of the "dollar smile" theory. Phil Rosen: You pointed out recently that the dollar saw a steep erosion in 2022 as a global reserve currency. More likely, we will evolve from a unipolar reserve currency world to a multi-polar world. Here's what he said on a potential "tripolar" reserve currency setup if the dollar loses dominance. And here are the top stories from markets this week:Lauren Simmons, a trader at the New York Stock Exchange.

☆ Jamie Dimon is vying to take control of First Republic Bank, report says, after JPMorgan steered clear of SVB
▼ + stars: | 2023-04-29 | by ( Ryan Hogg | ) www.businessinsider.com time to read: +3 min

First Republic Bank is set to be taken over by regulators as soon as Sunday. JPMorgan and PNC are frontrunners to acquire the ailing bank, The Wall Street Journal reported. Jamie Dimon might have avoided getting involved in a rescue of Silicon Valley Bank, but it appears that the JPMorgan CEO is preparing to swoop on ailing First Republic Bank. First Republic is worth 97% less than it did before Silicon Valley Bank collapsed last month. Dimon's active involvement in First Republic contrasts his decision to steer clear of any rescue for Silicon Valley Bank.

☆ Jamie Dimon's 'tone deaf' return to office mandate is getting pushback from JPMorgan staffers, who are complaining about being stuck on Zoom calls even while in the office: Reuters
▼ + stars: | 2023-04-28 | by ( Nidhi Pandurangi | ) www.businessinsider.com time to read: +4 min

JPMorgan is now mandating all managing directors work from the office five days a week. But that rubbed some workers the wrong way, who vented on an internal messaging system, per Reuters. They griped about being stuck in virtual meetings despite being in the office, long commutes, and family responsibilities. In the same video, Clarke even lauded one employee's work ethic who he said "sold their family dog" to improve work performance. Read the JPMorgan return to office memo in full here.

REUTERS/Marco BelloNEW YORK, April 27 (Reuters) - JPMorgan Chase & Co (JPM.N) CEO Jamie Dimon sent a clear message to employees this month: get back to the office. The largest U.S. lender's employees inundated an internal messaging forum with criticism after its operating committee posted an edict entitled, "The importance of being together." JPMorgan first called employees back to the office on a rotational basis in mid-2021 after months of pandemic shutdowns. "We don't want to punish everybody because of that, but people agreed to do three days a week; we expect three days a week." Many branch employees, building staff and other workers have reported to offices throughout the pandemic without the option to work remotely.

☆ First Republic could make failure safe again
▼ + stars: | 2023-04-27 | by ( John Foley | ) www.reuters.com time to read: +4 min

NEW YORK, April 27 (Reuters Breakingviews) - When Silicon Valley Bank and Signature Bank failed in March, U.S. authorities bailed out their depositors regardless of size. The slower destruction at First Republic Bank (FRC.N) could provide an opportunity to reverse the regrettable precedent. And while it’s never good when a business fails, there’s a potential benefit to letting First Republic go. First Republic had $233 billion of assets at the end of March, and $104 billion of deposits compared with $176 billion at the end of December. Silicon Valley Bank, owned by SVB Financial, was taken into receivership on March 10, while Signature Bank was closed by the Federal Deposit Insurance Corp on March 12.

☆ First Republic may not survive, even after two multibillion-dollar bailouts
▼ + stars: | 2023-04-26 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

New York CNN —First Republic Bank is in a fight for its survival. “It’s becoming clearer each day” that First Republic is “toast,” said Don Bilson at Gordon Haskett, in a note Wednesday. First Republic said in its latest earnings call that is exploring its strategic options, Wall Street code for searching for a white knight. First Republic CEO Michael Roffler attempted to assure investors in an earnings call Monday that the bank had enough liquidity to do that. That’s what happened to Silicon Valley Bank on March 10 when the California Department of Financial Protection and Innovation took possession of and closed Silicon Valley Bank and on March 12 Signature Bank was closed by the New York State Department of Financial Services.

Bischoff died on Tuesday of natural causes, a close relative, who asked not to be named, told Reuters on Wednesday. A former chairman of Lloyds Banking Group (LLOY.L), Citigroup (C.N) and more recently JP Morgan Securities (JPM.N), Bischoff had also been CEO of Schroders (SDR.L). Robert Swannell, former chairman of Marks & Spencer, who worked with Bischoff for 33 years at Schroders and later Citi, said he would profoundly mourn his friend and colleague. The deal was hailed as a huge success for Bischoff's leadership team, having started with a business worth just a fraction of the 1.3 billion pounds price Citi later paid. He returned to JP Morgan as chairman of JP Morgan Securities the same year.

☆ Asia's richest banker will loom over his successor
▼ + stars: | 2023-04-25 | by ( Shritama Bose | ) www.reuters.com time to read: +3 min

It will also be messy and is at odds with the regulator’s own aim to improve governance across the industry. Bosses of the country’s private-sector banks are allowed to stay in their jobs for up to 15 years. It is little surprise that more than 99% of investors voted for him to stay, per exchange filings published last week. If Kotak sits on the board, his successor - expected to be an insider – will effectively continue to work with his or her long-time boss. If things go wrong at Kotak, regulators may end up wondering who to blame.

☆ Senior Citi banker departs shortly after report of Epstein meetings
▼ + stars: | 2023-04-25 | by ( ) www.reuters.com time to read: +1 min

April 25 (Reuters) - Citigroup (C.N) senior executive Paul Barrett has left the bank, it said on Tuesday, days after media reports that he met with disgraced financier Jeffrey Epstein while he was employed at rival JPMorgan Chase (JPM.N) became public. "Until recently, Citi was unaware of Paul Barrett's association with Jeffrey Epstein, which predated his employment at our firm. Mr. Barrett is no longer employed by Citi," the bank said in a statement. JPMorgan, the largest U.S. bank, faces lawsuits seeking damages by women who claim that Epstein sexually abused them, and by the U.S. Virgin Islands, where the late financier had a home. Reporting by Manya Saini in Bengaluru and Saeed Azhar in New York; Editing by Shailesh KuberOur Standards: The Thomson Reuters Trust Principles.

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