JP Morgan has bought the troubled First Republic Bank. After this news, a sharp jump was registered in the US stock market. The Dow Jones gained 119 points, or 0.4%, while the S&P 500 rose by 0.3% and the Nasdaq by 0.2%. Let us tell you that JP Morgan has bought most of the assets of the troubled First Republic Bank and is assuming the deposits of all the lenders in the deal announced on Monday, which was arranged by the US Federal Deposit Insurance Corporation (FDIC).
JP Morgan said it acquired a 'substantial majority' of the assets and deposits of First Republic Bank from the FDIC, insured and uninsured, the independent government agency that insures deposits for bank customers.