New York, May 1 (EFE).- The shares of the main US banks are showing stability in the early stages of trading this Monday after the intervention and sale of First Republic Bank, the third US bank to succumb to the financial storm that erupted in March.
Beyond the rise experienced by JPMorgan Chase, which today acquired the First Republic deposits and was left with “the substantial majority of its assets” and which appreciated 3.08% shortly after the opening of Wall Street, the shares of the most other big banks were also aiming for profit.
Bank of America rose 0.36%, Wells Fargo 2.97%, Citigroup 2.17% and Goldam Sachs 0.69%, while others headed lower including PNC Financial Services whose shares fell a 4.74%, US Bancorp, which lost 0.85%, and Capital One, which fell 0.23%.
Several stock indices that follow national banks have also been stable in the early stages of the stock market after the debacle of First Republic, the second largest bank to collapse in the country’s history.
Thus, of the funds that follow the titles of the main financial institutions in the country, ETF Invesco KBW Bank ETF rose 0.17%, while the SPDR KBW Bank ETF remained stable.
While ETFs that track regional entities such as the Invesco KBW Regional Banking ETF, SPDR S&P Regional Banking ETF or Dow Jones US Regional Bank Index Fund respectively lost 0.43%, 0.57% and 1.53% .
The US bank JPMorgan Chase today won the bid to buy the assets of the bankrupt First Republic Bank (FRB), as reported by the Federal Deposit Insurance Corporation (FDIC) of this country.
The FDIC, an independent US federal agency for insurance, said in a statement that the agreement between the two entities was closed in the last few hours, and that “JPMorgan Chase Bank will assume all deposits and substantially all assets of First Republic Bank”.
As of April 13, First Republic Bank, which was among the 15 largest banks in the country, had approximately $229.1 billion in total assets and another $103.9 billion in total deposits.
The bank, which had already been rescued with a fund of 30,000 million dollars contributed by the main financial companies in the country, including JPMorgan, sank again after announcing its quarterly results in which it revealed that during the worst moment of the crisis came to lose 100,000 million dollars of deposits.
