JPMorgan Chase is making headlines as they swooped in to save the day and rescue First Republic Bank as it was put into receivership earlier today. This is the third US bank to suffer failure in the past few months following Silicon Valley Bank and Signature Bank. First Republic Bank caters to a specific set of wealthy customers and had been offering ultra-low mortgage rates that have seen some dramatic increases over the past year. According to JPMorgan CEO Jamie Dimon, “Our government invited us and others to step up, and we did.”
JPMorgan’s actions to acquire First Republic Bank are not the first of its kind as the banking giant is no stranger to coming to the rescue. Recently, Lazard reported a significant loss for its first quarter of the year, leading to a 10 percent reduction of its employees. This cutback is due to the rapid deterioration that has befallen the global banking industry, particularly with the difficulties of moving money from businesses to consumers.
This has prompted organizations such as the Federal Reserve to conduct a report on the fall of Silicon Valley Bank and their findings showed that the bank was not addressed soon enough by their regulators. This, in turn, has caused regulators to realize their staffing was not sufficient enough to handle the situation and Reuters also reports on the issue.
These events have not kept organizations such as Credit Suisse from resecuring its employees, offering certain workers hefty retention bonuses in order to combine the bank with UBS.
One individual who is making a name for himself during this difficult time is Dave Lauer, the cofounder of the We the Investors advocacy group. He is currently attempting to improve current US market structure, according to a recent article in The Wall Street Journal.
Steve Cohen, the founder of Point72 and owner of the New York Mets, may also be looking for a change of scenery. Bloomberg reports of his ambitions to purchase one of three licenses to build a casino in New York City and is willing to spend big for it.
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To sum it up, these recent events have displayed that financial institutions are continually adapting during these troubling times and will be there to come to the rescue when needed.
