“We recognize that they have been under stress and uncertainty since March and hope that today will bring clarity and closure,” the bank said in a written statement.
First Republic cut roughly 25% of its workforce before JPMorgan stepped in. Bank employees who are not being offered jobs at JPMorgan will get an additional 60 days of pay and benefits, the bank said. Additional payments to those being let go will be based on how long they worked at First Republic.
The failure of First Republic Bank, based in San Francisco, became the second-largest in U.S. history. Regulators sold all of its deposits and most of its assets to JPMorgan Chase to restore order after three banks, including Signature and Silicon Valley banks, collapsed and threatened to undermine faith in the U.S. banking system.
The banks were unique, however, due to the large, uninsured deposits held by their customers and exposure to the tech industry, which had been hammered by rising interest rates that made borrowing more expensive.
Source: kqed.org
