(San Francisco Comprehensive Electric) U.S. financial regulatory agencies take over the first and banks of California, California, which are in a financial predicament, and then Approval of Morgan Chase's acquisition , which makes the first and banks the third major US bank in two months.
The U.S. Treasury emphasizes that the US banking system is still stable and tough.The transaction also made Morgan Chase, the largest bank in the United States.
The California Financial Protection and Innovation Department announced on Monday (May 1) that the Federal deposit insurance company (FDIC) that provided guarantee for bank deposits (FDIC) to provide a guarantee for bank deposits will be sold first with banks.Give Morgan Chase.
According to the agreement, Morgan Chase will pay FDIC to FDIC $ 10.6 billion (about S $ 14.1 billion) to acquire all assets of "almost" assets of the first and banks, including about 173 billion US dollars and $ 30 billion in securities.And all $ 92 billion deposits.
The $ 92 billion deposit includes JP Morgan Chase and another 10 other large US banks injected to the first and banks in March. Morgan Chase promised to pay the money to the 10 banks.
Morgan Chase also signed a loss sharing agreement with FDIC on some loans it acquired, but it will not take over the company's corporate debt or preferred shares of the first and banks.
The first and bank stock prices fell 43.3%in the trading before the market, and then suspended trading.Morgan Chase's stock price rose 2.7%.
FDIC is estimated to be about $ 13 billion from the deposit insurance fund.
The U.S. Treasury Department described that this is to solve the problem with the minimum loss of deposit insurance funds and protect all depositors. The Ministry of Finance encourages it.
A spokesman for the Ministry of Finance also said: "The banking system remains stable and tough. Americans should be safe in the security of deposit and the basic functions of providing credit to enterprises and families."
The first and banks were established in 1985 and are the 14th largest banks in the United States.Based on the amount of assets, it is the second largest closing bank in the United States.It disclosed the loss of more than 100 billion US dollars in the first quarter of the first quarter, and was under tremendous pressure after other options were exploring other options.
In fact, since Silicon Valley Bank and the two regional banks in Silicon Valley closed in March in March, after causing concerns about the spread of crisis, the first and banks have been in turbulence.Under the leadership of the U.S. government last month, 11 large banks jointly injected $ 30 billion in the first and banks, but the situation has not improved.Regulatory officials invited potential buyers, including JP Morgan Chase to bid the first and bank bids, and then take over the bank.
Chairman and CEO of JP Morgan Dime, Dimon, said: "The government invites us and others to come forward. We have done it. Our financial strength, ability, and business model enables us to minimize the deposit insurance fundThe way the cost is to execute this transaction. "
The Economist of the Institute of International Economic Research Institute of Peter Sen said: "The first and banks were identified as a problem bank as early as mid -March, and it is not a new reason for closure. But if another bank is in trouble,That will be another problem. "
