Paul J. Davies, Columnist

JPMorgan Jumps to the Rescue at First Republic — For a Price

The weekend deal hasn’t come cheap for anyone, something policymakers need to keep in mind as they debate the latest response to this mini banking crisis.

May 1, 2023 at 3:13 PM UTC

By Paul J. Davies

Paul J. Davies is a Bloomberg Opinion columnist covering banking and finance. Previously, he was a reporter for the Wall Street Journal and the Financial Times.

JPMorgan swoops in for the rescue.
Photographer: Justin Sullivan/Getty Images North America

Provide news feedback or report an error

Site feedback:

Take our Survey

This article is for subscribers only.

The slow collapse of First Republic Bank has a resolution and it’s Jamie Dimon, acting much like the original John Pierpont Morgan, to the rescue again. The chief executive officer of JPMorgan Chase & Co. won a weekend auction to take on most of the assets and liabilities of the failed bank.

But this is no act of altruism. After what seemed like an extended game of chicken between the Federal Deposit Insurance Corp. and private sector banks over the past week or so, this deal only happened with significant financial help for the buyer. It was the FDIC that blinked.