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Industry Spotlight > Mergers and Acquisitions

JPMorgan Retained 90% of First Republic Clients After Takeover

By Hannah Levitt

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JPMorgan Chase & Co. retained 90% of First Republic’s clients after buying the bank in a government-led auction earlier this year.

“A lot of the deposits came down rationally and over a very short period of time, but we still have relationships,” Marianne Lake, the company’s consumer and community-banking co-head, said at the Goldman Sachs U.S. Financial Services Conference Tuesday. “So we still have a lot of opportunity to talk to them about bringing more of their wallet back to the company.”

First Republic became the second-largest bank failure in U.S. history in May, hobbled by a hole in its balance sheet brought on by rising interest rates.

Depositors fled, first in search of higher rates and then in fear after fellow California regional lender Silicon Valley Bank failed in March.

Lake said JPMorgan is on track with its “integration milestones,” and expects to “outperform the deal model.”

She is one of the top JPMorgan executives overseeing the process, which Chief Executive Officer Jamie Dimon has repeatedly said is going well.

Lake also gave guidance for the fourth-quarter results: JPMorgan expects trading revenue to be “flattish” with the $5.7 billion it pulled in a year earlier, while investment-banking fees will see “pretty healthy growth” from $1.5 billion for the last three months of 2022.

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