JP Morgan Trims 1,000 Jobs At First Republic
I need to rewrite this blog section in short and simple sentences. Here's my attempt: The image in this blog is from Getty Images.
JP Morgan Chase is reducing the number of employees at First Republic Bank. This decision comes after they acquired the failed US lender earlier this month.
First Republic will cut 1,000 workers, or 15%. The BBC knows this.
This week, First Citizens bought a troubled lender in the US. They also said they will cut some jobs.
In the beginning of this year, troubles in US regional banks caused concern about a bigger crisis.
JP Morgan said it's getting rid of jobs at a bank based in San Francisco. They didn't give exact numbers.
Workers who are impacted by the situation will be granted 60 days of compensation and benefits. They will also be given a set of benefits, like a one-time payment.
JP Morgan announced they are helping employees to find new jobs. This could be within or outside JP Morgan.
JP Morgan spokesperson said they were honest with First Republic employees and fulfilled their assurance to give them updates on their employment within 30 days after the acquisition on May 1.
The spokesperson said they understand that people have been stressed and unsure since March. They hope that today will give them clarity and closure.
First Republic was a big player in home loans and had many wealthy clients. They were the 14th biggest lender in the US last year. In April, they were worth over $20bn.
The banking system was threatened after some lenders in the US like Silicon Valley Bank failed. This caused worries about the banking system.
First Republic announced in April that it lost $100bn in deposits. Customers were withdrawing their funds.
JPMorgan will pay $10.6bn to buy First Republic. Regulators arranged the deal. This happened earlier this month.
Banks are worried about the worth of their bonds. The worth of bonds went down because interest rates went up. People outside the banks also have concerns about this. The market is affected by this issue.
First Republic's collapse was the second biggest in US history. Now, JP Morgan Chase Bank has taken over with its 84 offices in eight states. It was sold to JP Morgan Chase Bank after regulators took control.
SVB's US operations are now owned by First Citizens. HSBC bought SVB's business in the UK. HSBC's headquarters are in London.
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The BBC knows that First Citizens is going to cut 500 jobs that previously belonged to SVB workers.
The CEO of First Citizens, Frank Holding, sent an email to BBC. The email talked about SVB's problems. Earlier this year, SVB had some problems. The email said that some cuts will happen. These cuts will only affect certain SVB functions. The cuts will not affect people who talk directly to clients.