First Republic customers will keep all their money, but company's stock is worth zero in its current form
By Steve Gelsi
First Republic customer assets are backed by 'fortress' balance sheet of JPMorgan, which is buying the bank through an FDIC-brokered deal
JPMorgan Chase & Co. will protect all insured and uninsured deposits for customers at First Republic Bank as part of its acquisition of the bank, the merging financial institutions said Monday.
As JPMorgan Chase (JPM)announced its win in a government-led auction of First Republic Bank, the bank said it would step in starting Monday to serve all of the clients of the bank and protect its deposits.
"JPMorgan Chase has been a leader in financial services for more than 200 years, and we look forward to continuing to serve you and be deserving of your trust and business," the bank said in a message posted on First Republic's website. "You will receive uninterrupted service."
The website is still functioning for transactions, and First Republic customers will continue to work with their advisers and other team members at the bank. All First Republic Bank branches remain open.
Meanwhile, First Republic's (FRC) stock remains halted and will not trade again in its current form, similar to the shares of Signature Bank and Silicon Valley Bank after the Federal Deposit Insurance Corp. stepped in to backstop those banks in March.
The remaining holding company of Silicon Valley Bank, SVB Financial Group (SIVBQ), continues to trade since it is still owned by the FDIC. The same is true for Signature Bank (SBNY).
At last check, SVB Financial's stock is trading at 46 cents a share and Signature Bank's is trading at 7 cents a share.
Prior to its halt on Monday, First Republic's stock had fallen 97% in 2023.
-Steve Gelsi
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
05-01-23 1127ET
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