8.4 C
London
Friday, March 29, 2024
HomeBusinessJP Morgan, the new owner, eliminates 1,000 positions

JP Morgan, the new owner, eliminates 1,000 positions

After acquiring bankrupt US lender First Republic Bank this month, Wall Street titan JP Morgan Chase is laying off employees.

Around 1,000 positions, or 15% of the total workforce, will be eliminated.

Also this week, First Citizens, which recently acquired the US division of another troubled lender, announced layoffs.

Earlier this year, issues with regional banks in the United States sparked concerns of a more widespread crisis.

JP Morgan, the new owner, eliminates 1,000 positions

JP Morgan confirmed that it was eliminating positions held by bank employees in San Francisco, but did not provide a figure for the job losses.

The affected employees will receive pay and benefits for sixty days, in addition to a flat sum payment and additional benefits.

JP Morgan also stated that it would help them locate new positions within or outside the company.

A JP Morgan spokesperson said in a statement, “Since we acquired First Republic on May 1, we have been transparent with their employees and have kept our promise to update them on their employment status within 30 days.”

The spokesperson added, “We recognize that they have been under stress and uncertainty since March and we hope that today will bring clarity and closure.”

At the end of last year, First Republic was the fourteenth largest lender in the United States. It was known for its large home loan business and roster of affluent customers. It was valued at more than $20 billion (£16,2 billion) at the start of April.

However, it came under pressure after the failure of several US lenders, including the technology-focused Silicon Valley Bank (SVB), sparked concerns about the health of the banking system.

Later in April, First Republic reported it had lost approximately $100 billion in deposits as consumers withdrew funds.

JPMorgan bought First Republic for $10.6 billion in a regulator-brokered deal earlier this month.

As interest rates rose, bank bonds lost value, causing market-wide fears.

First Republic’s failure is the second-largest in U.S. history. After regulators sold the bank to JP Morgan Chase Bank, its 84 offices in eight states reopened this month.

First Citizens bought SVB’s US businesses, while London-based HSBC bought its UK operations.

First Citizens also plans to eliminate approximately 500 positions held by former SVB employees.

RELATED ARTICLES

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Most Popular

Is Israel’s Gaza war straining US-South Africa relations?

Amid tensions between the two countries, the United States House of Representatives is currently deliberating on a measure that proposes a reevaluation of the nation's relationship with South Africa. It is believed that the purpose of South Africa's Foreign Minister Naledi Pandor's recent visit to Washington, DC, was to inform the US strategic community of Pretoria's stances on significant areas of divergence from Washington.

Prisoner charged with stabbing Beckenham rail passengers

A male juvenile has been apprehended on suspicion of attempted murder subsequent to the stabbing of a man in south-east London aboard a train in the presence of appalled passengers. Wednesday afternoon, while the train was traveling from Shortlands and Beckenham to London, Victoria, the passenger sustained life-threatening injuries. The victim, who is in his twenties, is in critical but stable condition at the hospital, according to the British Transport Police (BTP).

King Charles’ Easter sermon after cancer diagnosis

The monarch, who suspended significant public responsibilities in March to endure cancer treatment, was photographed seated at his Buckingham Palace desk during the recording of his audio message. The message was scheduled to be played for a congregation at Worcester Cathedral on Thursday during his absence. Following his and the Princess of Wales's cancer diagnoses, the King stated in a personal Easter message that he would continue to serve the nation with "my whole heart."

Where do UK properties sell fastest and slowest?

According to research by Rightmove, Scotland is home to nine of the ten fastest-moving property markets in the United Kingdom. Local properties in Falkirk, located in the Central Lowlands, sell in an average of 26 days, which places them in close second place. In contrast, properties in the adjacent town of Larbert require 27 days on average to find a buyer.

Recent Comments