From Bankruptcy Fear to Billions: JPMorgan’s ‘Too Big to Fail’ Triumph

JPMorgan Chase generated billions in profits after acquiring failing bank First Republic, contributing to a record $50 billion net income for the megabank. JPMorgan retained 90% of First Republic’s clients following the acquisition, benefiting from its large size and stability. JPMorgan’s “fortress balance sheet” allowed it to weather the acquisition with minimal negative impacts, and the bank was able to drive deposit margins up. First Republic had a profitable business model but collapsed due to fears of a banking crisis and a large-scale bank run. JPMorgan previously acquired Washington Mutual in 2008 and saw its net income double the following year.