It’s over to pass for the white knight. With a disinterested and tired air, the ogre of the American banking system, the boss of JPMorgan Chase Jamie Dimon, told Bloomberg that he would not operate new takeover projects. On May 1, it was he who completed an operation with First Republic, a quite exceptional opportunity to recover hundreds of billions of dollars in assets, break the authorities’ anti-competitive lock and get out of instability in the sector. bank even stronger.
“It’s a lot of work”he said, after having listed the means put in place by the bank during this kind of exceptional situation. “We have 800 people working day and night (…) 10,000 people mobilized to consolidate systems, risks, fraud, credit, payments, branches, real estate, suppliers, technology”, he added. First Republic was important and he did not hide the interest “marginal for shareholders” but that it will now be necessary to be “ready for the other side of the mountain”.
This other side, finally, will be to be able to assume the transmission of relay. Jamie Dimon told Bloomberg that the regional bank had many hidden costs that would weigh on the growth of other branches of the group. First Republic still remains a big case with $173 billion in loans, $30 billion in securities and $92 billion in deposits. There will be no other acquisitions of this level, he confirmed, “despite potential criticism” analyzed a journalist of Fortune.
Is JPMorgan too big to fail?
“I don’t know what that word means anymore,” CEO Jamie Dimon tells @flacquaadding that people should not fear consolidation in the financial sector pic.twitter.com/nhNiPmzO2k
— Bloomberg TV (@BloombergTV) May 11, 2023
First Republic is one of the last links in a series of downfalls of several large American banks, including the highly publicized Silicon Valley Bank (SVB) and its portfolio of startup and investment fund assets recovered by First Citizens. In Europe, the consolidation of the banking sector accelerated after the exceptional takeover of Credit Suisse by its great rival CBS, in an operation with more than 3.2 billion dollars and billions of Swiss francs from the taxpayer to stabilize the banking system. Swiss.
JPMorgan Chase et First Republic
During the first signs of weakness of First Republic, Jamie Dimon had launched a first operation of support by joining 11 establishments (including Wells Fargo) and the Federal Deposit Insurance Corporation (FDIC) to inject 30 billion dollars hoping to be able to avoid the bank to go bankrupt. The project had only backed the San Francisco facility until April 24 and the revelation of the bank’s accounts in which $102 billion had been withdrawn from customers since mid-March.
In the ranking of the largest banks in terms of assets, JPMorgan Chase is the first American bank, ahead of Bank of America, with more than 3,670 billion dollars in assets. On the scale of systemic banks, many rank the group at the top of the list. On the stock market, the company capitalizes nearly 400 billion dollars and reached peaks in November 2021. Born of the merger between Chase Manhattan Bank and JP Morgan & Co. in January 2001, the bank with its New York headquarters has been managed since 2005 by Jamie Dimon.
