The Washington PostThe Washington Post

JPMorgan's acquisition of First Republic revives too-big-to-fail talk

By David J. Lynch

01 May 2023 · 7 min read

Editor's Note

JPMorgan and the other banking giants are getting even bigger, which is making some people very unhappy. The Post explains why this is happening and asks: Is it a good or a bad thing for the industry?

JPMorgan Chase's purchase of First Republic Bank is intended to end a budding financial crisis but it risks doing so by reviving a political battle over the power of the nation's largest financial institutions.

Already the largest U.S. bank with more than $3.2 trillion in assets, JPMorgan added an additional $200 billion in loans and securities by acquiring First Republic in a pre-dawn transaction with the Federal Deposit Insurance Corp.

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