"JP Morgan and PNC Move to Acquire First Republic"

by Kang Nahum

Published 29 Apr.2023 12:40(KST)

[Image source=Reuters Yonhap News]

The Wall Street Journal (WSJ) reported that major banks such as JP Morgan and PNC Financial Services Group have entered the bidding to acquire the regional bank First Republic, which is facing bankruptcy.

On the 28th (local time), WSJ cited sources saying that JP Morgan and others have jumped into the competition to participate in the acquisition process following the U.S. federal government's sale procedure of First Republic. The seizure and sale process of First Republic is expected to begin as early as the 29th or 30th.

Earlier, as the situation of First Republic Bank worsened, there were speculations that intervention by U.S. authorities was imminent. If First Republic Bank enters the management system of the Federal Deposit Insurance Corporation (FDIC), it will undergo a forced sale process.

First Republic's market capitalization decreased by 97% since April 10, following the bankruptcy of Silicon Valley Bank (SVB) and the spreading crisis surrounding regional banks.

First Republic, a bank based in the San Francisco area, saw increased bankruptcy concerns after its first-quarter earnings report, which revealed that deposits had fallen by more than 40%, was released on the 24th.