SUMMARY
- JPMorgan and PNC Financial Services Group vying to buy struggling First Republic Bank
- FDIC preparing for potential receivership, setting a bidding deadline
- First Republic's efforts to stay afloat falter, as Dimon considers stepping in
So, picture this: Jamie Dimon, the big-shot CEO of JPMorgan, decided not to save Silicon Valley Bank, right? But now, he's got his eyes on the struggling First Republic Bank. Talk about a plot twist!
Turns out, JPMorgan Chase and PNC Financial Services Group are both trying to snatch up First Republic as it teeters on the edge of receivership. The Wall Street Journal broke the news, and the FDIC is gearing up to step in if necessary.
First Republic Bank's shares took a nosedive after the news broke, now valued at a whopping 97% less than before Silicon Valley Bank crumbled last month. JPMorgan and PNC had until Sunday to make their final bids, according to Bloomberg.
The past few weeks have been a rollercoaster for First Republic, with multiple attempts to save it from going under. Jamie Dimon even worked with the Federal Reserve to offer a hefty $70 billion credit line, and the bank got a $30 billion deposit from major banks, including JPMorgan and PNC.
Unfortunately, the cash infusion didn't do the trick. First Republic's earnings report showed a 41% drop in deposits, and they're now scrambling to stay afloat. They've tried everything from hiring investment bankers to cutting executive pay and slashing jobs. But as it stands, the bank needs a hero. Will Jamie Dimon answer the call?
WOM Money Picks
Be a part of the winning team | 81% Success Rate.