JPMorgan Chase informed about 1,000 employees of First Republic Bank on May 25, 20233 that they would no longer have a job. This is reported by the media.
JPMorgan acquired most of First Republic's assets in early May, following the bankruptcy of the San Francisco-based bank. This is the second largest bank failure in U.S. history.
JPMorgan informed all First Republic employees of their future employment status, and the vast majority — or almost 85% — were offered a temporary or permanent position.
That leaves 15%, or about 1,000 employees, who do not receive job offers.
JPMorgan said the company's May 1 deal with the Federal Deposit Insurance Corporation to buy most of First Republic's shares did not include all of the company's employees.
The bank said that employees who were not offered a position will receive wages and benefits within 60 days, and they will also be offered a package including an additional lump sum payment, as well as benefits and resources to find new opportunities.
It is unclear how many employees from First Republic who have been offered employment at JPMorgan will work on a permanent basis, rather than on a temporary basis. According to JPMorgan, the temporary jobs offered to some First Republic employees will last from three to 12 months.
After regulators shut down First Republic, JPMorgan won a competitive process conducted by the FDIC. JPMorgan agreed to pay $10.6 billion to the corporation.
Some progressives, including Senator Elizabeth Warren of Massachusetts, criticized the deal with First Republic because it allowed America's largest bank to become even bigger.
