Copyright BusinessAMBE

JPMorgan bought the ailing First Republic Bank on May 1. At that time, it was announced that they would clarify the employment of employees within the month.

First Republic Bank ran into trouble after the collapse of Silicon Valley Bank and Signature Bank. JPMorgan saved the bank in the nick of time, but also warned at the time that jobs would be lost.

In the news: Some 15 percent of First Republic Bank employees must clear their desks. Bloomberg reports.

  • "Since our acquisition of First Republic on May 1, we have been transparent with their employees and have kept our promise to notify them of their employment status within 30 days," JPMorgan responded in an official statement.
  • The company stressed that they were able to offer jobs to "the vast majority." As recently as April, JPMorgan estimated that 20 to 25 percent of the workforce would have to be laid off.
  • Employees will receive 60 more days of pay and benefits, with a one-time monetary payment on top. The company says it will also help them find new jobs.

Too big to fail

  • Many of First Republic's customers were high net worth individuals or corporations, whose deposits far exceeded $250,000, and thus were not insured under the Federal Deposit Insurance Corp (FDIC).
  • As a result, depositors fleetingly removed up to $100 billion from the bank, parking it with largertoo-big-to-fail banks such as JPMorgan.

© The Content Exchange, source News