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Here’s the Great Deal JP Morgan Got On First Republic, According to JP Morgan’s Victory Lap in Front of Investors

May 02, 2023

by Wolf Richter Wolf Street

A one-time “bargain purchase gain” of $2.6 billion, “over $500 million” in net income accretion, lots of other goodies amounting to an IRR of “over 20%.”

So JP Morgan Chase won the “highly competitive bidding process” for the dismembered pieces of First Republic. It will cost the FDIC’s insurance fund about $13 billion, the FDIC said. Even the uninsured depositors were made whole, mainly the 11 banks, including JPM itself, that put in $30 billion on deposit at First Republic back in March to prop it up. Stockholders and preferred stockholders were bailed in and wiped out. We discussed all this here.