Report: JPMorgan Chase Not Looking to Buy Another Bank
BY PYMNTS | MAY 16, 2023
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It’s “unlikely” J.P. Morgan Chase would acquire another struggling bank.
That was J.P. Morgan Chase CEO Jamie Dimon’s answer to a question asked Tuesday (May 16) during the bank’s annual shareholder meeting, CNBC reported Tuesday.
The answer came about two weeks after J.P. Morgan’s May 1 acquisition of First Republic Bank, which the Federal Deposit Insurance Corporation (FDIC) had taken over amid the second-biggest banking collapse seen since 2008.
Dimon added during the shareholder meeting that J.P. Morgan is now integrating First Republic and that it “will further help advance our wealth as well as other initiatives,” Reuters reported Tuesday.
As PYMNTS reported May 1, J.P. Morgan gains $87.4 billion in First Republic deposits upon the deal’s closing (which eliminates a $5 billion deposit from J.P. Morgan and where the post-closing tally includes $25 billion of deposits that will be repaid to large banks).
Dimon also said during Tuesday’s shareholder meeting that it is not enough for banks to simply meet regulatory requirements, pointing to the recent turmoil in the industry after the failure of Silicon Valley Bank, according to the CNBC report.
Addressing other issues during the meeting, Dimon said J.P. Morgan is ready if interest rates and inflation should remain high, and that he is more concerned about geopolitical events, cyberattacks and market turmoil, the report said.
The CEO said last week that the banking industry is going to see tough times as far as regulations go.
“I think it’s going to get worse for banks — more regulations, more rules and more requirements,” Dimon said at the time. “If you overdo certain rules, requirements, regulations — there are some of these community banks that tell me they have more compliance people than loan officers.”
Meanwhile, the Federal Reserve Board aims to make changes after the recent banking crisis.
In testimony for a House committee hearing that was posted on the Fed’s website Monday (May 15), Federal Reserve Board Vice Chair for Supervision Michael S. Barr said that the failure of Silicon Valley Bank showed a need to strengthen supervision and regulation and that he plans to “improve the speed, force and agility of supervision.”
