JPMorgan informs some First Republic employees of job losses - source (updated)

First Republic Bank

25/05/2023 20:34

(Changes source in paragraphs 1 and 2, JPMorgan statement in
paragraph 3, adds details on the bank's collapse in paragraphs
4-6)
       May 25 (Reuters) - JPMorgan Chase and Co  JPM.N  has
notified some employees of First Republic Bank that they are not
being given jobs, even temporarily, as it starts to integrate
the failed lender, a person familiar with the matter told
Reuters on Thursday.
    The bank has offered employment to nearly 85% of First
Republic employees in a transitional or full-time role, the
source said. The estimated working period for temporary roles
will be three months to a year, depending on the job. 
    "We've been transparent with their employees and kept our
promise to update them on their employment status within 30
days," JPMorgan said in an emailed statement. 
    Regulators seized First Republic and sold its assets to
JPMorgan in early May, in their effort to resolve the largest
U.S. bank failure since the 2008 financial crisis.
    First Republic took one of the hardest knocks during the
banking sector crisis in March, when depositors fled en masse,
spooked by the collapse of two mid-sized lenders.
        The bank tried to salvage itself from the turbulence,
but its disclosure of more than 
    $100 billion in outflows
     in the first quarter and a plan to explore new options
drove shareholders to dump its stock.
  
        Bloomberg News was the first to report on job losses.
  

 (Reporting by Nupur Anand in New York and Manya Saini in
Bengaluru; Editing by Anil D'Silva)
 ((Manya.Saini@thomsonreuters.com;))