Thursday, June 1, 2023

The United States sold First Republic Bank to JP Morgan

After US bank First Republic Bank announced its closure due to recent economic problems, financial authorities took over the entity and sold it to JPMorgan Chase.

This situation comes after a long process between the bank and the United States authorities, in which the banking organization was asked for a rescue plan, but this could not be achieved and the shares continued to fall.

“These measures will ensure that the banking system is safe and sound. All depositors are being protected, and most importantly, taxpayers will not be harmed,” said the President of the United States of America. Joe Biden,

For his part, JPMorgan executive director Jamie Dimon said in a conversation with several media outlets that he was proud of the invitation extended by the government to take over First Republic Bank, and explained that one of its objectives is to help the organization. Stabilize the whole issue.

First Republic is the second largest bank in the United States to collapse, after learning days earlier of the loss of nearly $100,000 million in deposits in the first three months of 2023.

Likewise, according to studies done by the government of the United States of America, they would have to pay about 13,000 million dollars to be able to cover the losses of the First Republic.

The closure of the bank was expected to increase bank stocks in the US, but this did not happen and financial stability has been achieved.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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