JPMorgan, Wells Fargo, Bank of America and Citigroup are all in positive territory in morning trading.
|JPMORGAN CHASE & CO.
As part of the deal, JPMorgan will make a $10.6 billion payment to the Federal Deposit Insurance Corp (FDIC) for most of the San Francisco-based lender's assets, after government regulators seized control of the failed bank over the weekend, securing the third major U.S. financial institution to collapse in 60 days.
JPMorgan also entered into a loss-share agreement with the FDIC on single family, residential and commercial loans it bought but will not take First Republic Bank's corporate debt or preferred stock.
|WELLS FARGO & CO.
|BANK OF AMERICA CORP.
First Republic came under intense pressure after disclosing last week that it had suffered more than $100 billion in outflows in the first quarter and was exploring options.
The acquired businesses will be overseen by JPMorgan’s Consumer and Community Banking co-CEOs, Marianne Lake and Jennifer Piepszak, the bank said in a statement.
The rescue comes less than two months after a deposit flight from U.S. lenders forced the Federal Reserve to step in with emergency measures to stabilize markets.
Reuters contributed to this report.