[Too big to fail?]

First Republic gets taken over by JPMorgan making it the 2nd largest bank failure in US history.

• Three of the four largest-ever U.S. bank failures have occurred in the past two months

"Our government invited us and others to step up, and we did...This acquisition modestly benefits our company overall, it is accretive to shareholders, it helps further advance our wealth strategy & it is complementary to our existing franchise… We bank countries, we bank the IMF. We bank the World Bank. You need large, successful banks. And anyone who thinks the United States of America ought not have to that should call me directly.” - JP Morgan

• FDIC paid $10.6B by JPM

• JPM recognizes gains of $2.6B

• JPM 20% IRR and $500mm net income accretion

• Tangible book value accretive

• Capital ratios intact

• Everybody gets deposits back

• JPM paying $10.6 billion to FDIC

• The loss-share agreement is 80% on mortgages, CRE

• The broader banking business model: "SVB episode has put front and center the question of the viability of the business model of mid-sized banks, which must be analyzed... given growing importance of scale in succeeding in the banking industry today, regulators may have a choice to make"