The Dhaka Times Desk JPMorgan Chase & Co. is buying troubled First Republic Bank of the United States.
US regulators said the bank had been seized and JP Morgan had agreed to buy the bank. With this, in just two months, a third bank in the United States collapsed.
JP Morgan isn't taking everything from First Republic. They are acquiring First Republic's $173 billion or $17,300 million in debt, $30 billion or $3,000 million in securities, and $92 billion or $9,000 million in deposits. However, they will not acquire First Republic's corporate debt and some stocks. Reuters news.
On the morning of May 1, the California Department of Financial Protection and Innovation said that the control of First Republic Bank is now in their hands. In addition, the FDIC will also serve as receiver or supervisor of the bank. The FDIC, the Internal Revenue Service and the Federal Reserve recently met with the nation's financial institutions to outline how to save the First Republic.
Recently, several major banks in the United States, such as Bank of America Corporation, Citigroup, J.P. Morgan and Wells Fargo & Co., jointly supported First Republic with 30 billion or 3 billion dollars.
According to FDIC calculations, First Republic's deposit insurance will cost $13 billion or $1,300 million. The final calculation will be made when the FDIC steps down from the role of supervisor.
In this regard, J.P. Morgan said, after the deal, they expect First Republic to generate one-time after-tax income of $2.6 billion. However, this does not account for the $200 billion that could be spent on post-tax restructuring over the next 18 months.
In the US last March, two banks closed within three days - Silicon Valley Bank and Signature Bank. According to an analysis of the New York Times, mainly middle-class banks in the United States are facing a crisis. Following the path of the previous two banks, First Republic also collapsed.
Things to do to prevent Corona virus
# try to stay at home all the time.
# Follow the rules and use mask when going out for emergency.
# three-layer cloth mask can be washed if desired.
# wash clothes after coming home from outside. Or hang it without shaking for at least four hours.
# Wash hands thoroughly (for at least 20 seconds) with soap or liquid before coming outside.
# plastic PPE or eyes, face, head must be washed thoroughly with detergent and dried after one use.
# Wear PPE made of cloth or clean as described.
# Use a head cap that completely covers the hair.
# Those who have sneeze cough should follow all the rules promulgated by the government. Also, wash hands as directed before and after handling food items, keys, switches, mice, remote controls, mobiles, watches, computer desks, TVs, etc. and after using the bathroom. Those who have dry hands use Moisture after washing their hands. Soap or hand liquid can be used. Why can this virus remain in the crackle (cracked part) of dry hands? Avoid using highly alkaline soaps or detergents.
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