JPMorgan chase, the nation's largest bank, is now taking over First Republic Bank, the second largest bank failure in U.S. history with the shareholder the clear losers. It's almost like nothing ever happened.
JPMorgan Chase, the nations largest bank, is now taking over First Republic Bank, in the second-largest bank failure in U.S. history with the shareholder the clear losers.
That also gives confidence to banks to do banking without fear of depositor panic. "We have really quelled the fear and the runs on some of these banks," said Professor Wilcox. A government takeover would have been far more expensive. "So in that sense, the government has done a really good job in quelling the burgeoning fear that we had a month ago," said Wilcox.
The biggest losers are the shareholders. "This is bad for shareholders obviously, but, then again, shareholders, they know or has to know what they were getting into in investing First Republic," said Professor Vogel. Question is: will JPMorgan Chase continue to operate First Republic under its own name, a very popular and respected name? It's important to note that JPMorgan actually does business under seven different names. "I hope they do remain as First Republic Bank. Definitely, the customer service is a lot better. You know, they're more friendly I think," said Legler.
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