JPMorgan culling First Republic Bank's personal credit lines - The Information (updated)

First Republic Bank

25/05/2023 18:22

(Adds details from the report in paragraph 2, background in
paragraphs 3, 5 and 6)
       May 25 (Reuters) - JPMorgan Chase & Co  JPM.N  has told
customers with personal credit lines at First Republic Bank that
it will no longer offer those when they come up for renewal, The
Information reported on Thursday, citing correspondence it had
viewed.
    The affected clients are being offered the option to
transform their revolving credit lines into fixed-term loans at
the same rate for a period of up to five years, the report said,
adding First Republic is also asking customers if they would
prefer to pay off their credit lines.
        First Republic's business model was to lure high
net-worth customers with preferential rates on mortgages and
loans. 
  
    JPMorgan did not immediately respond to a Reuters request
for comment. 
        Regulators 
    seized First Republic
     and sold its assets to JPMorgan in early May, in their move
to resolve the largest U.S. bank failure since the 2008
financial crisis.
  
        First Republic was among regional U.S. lenders 
    most battered
     by a crisis in confidence in the banking sector in March,
when depositors fled en masse, spooked by the collapse of two
mid-sized banking rivals. 
  

 (Reporting by Manya Saini in Bengaluru; Editing by Anil
D'Silva)
 ((Manya.Saini@thomsonreuters.com;))