An announcement came out over the weekend that has more relevance to you than you may think. The Biz Doc gives the breakdown of First Republic Bank going “bottoms up” in this week’s episode of The Biz Doc.
CEO of JPMorgan Jimmy Diamond saw this as an opportunity to pick up the “goods” and made some purchases. Over the weekend, however, JPMorgan announced they are closing 21 First Republic Bank branches by the end of 2023 – 25 of the 84 branches.
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Here’s a breakdown from the Biz Doc, himself:
Ellsworth’s major talking points: “Here’s what JPMorgan acquired – $173 billion dollars of loans meaning they are now collecting the interest on those loans. $30 billion dollars of securities run by the bank – remember the bank went bankrupt and it doesn’t mean they had nothing, it just means that they had more debt or bad bonds than they had this stuff. Then they had $92 billion in deposits – those deposits are what you and I had in the bank, which the FDI, FDIC said ‘those are going to be saved, don’t worry about it, consumers, small business owners, you are not going to lose your money, and so, that’s what happened.”
“A bank is known by its deposits, its loans and the securities it owns, it’s not about the employees or the branches, sorry. When they bought this, they knew full well, that they didn’t buy the jewelry case, they bought the jewels.”
“When it comes to businesses – when it comes to buying things – what’s inside is far more invaluable often, you’re not buying the house, you’re buying the furniture, the stuff that you can take to that Antique Road show.”
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