Finance
Dimon Defies Big-Bank Critics, Winning FDIC Auction to Keep Expanding
- JPMorgan CEO says bank was invited to step up, ‘and we did’
- FDIC says the agreement met its ‘least-cost requirements’
JPMorgan Chase & Co.’s purchase of First Republic Bank puts a new twist on “too big to fail” — with the largest US lender using its mighty balance sheet to beat competitors and spare regulators an even uglier hit from the latest regional bank collapse.
JPMorgan Chief Executive Officer Jamie Dimon’s offer to acquire the troubled lender reduced the cost to the Federal Deposit Insurance Corp.’s main fund, compared with offers received from smaller firms. But the outcome means the US banking giant will now grow even larger, potentially provoking critics of financial titans.