The regulator is looking into executives' share translations before the sale.
The US Securities and Exchange Commission (SEC) is investigating whether First Republic Bank executives were engaged in any insider trading activities before the government seizure and sale of assets to JPMorgan Chase, Bloomberg reported citing people familiar with the matter.
More Troubles for First Republic?
San Francisco-headquartered First Republic was seized by the California Department of Financial Protection and Innovation early last week, and the majority of its assets, including deposits, were brought by JPMorgan Chase in a rushed bidding process.
The collapse of the regional bank came with the continued outflow of deposits from the bank. Depositors took out over $100 million last March, following over $176 million outflow in 2022.
The troubles in the bank started when two other American banks, Signature Bank and Silicon Valley Bank, collapsed earlier this year. Then, First Republic received a lifeline deposit of $30 million from a consortium of 11 large banks, including JPMorgan Chase. However, that turned out to be ineffective as the bank's revenue in the first quarter went down 13.4 percent year-over-year to $1.2 billion. Also, its net interest income declined 19.4 percent to $923 million, and its net income went down 32.9 percent to $269 million.
Lawmakers Raising Questions
Though not officially confirmed, the report of the SEC's probe came a day after US Senator Elizabeth Warren accused First Republic executives of "mismanagement" in her letter to the bank's former CEO, Michael Roffler. In addition, she raised questions about the bank's risk management and executives' pay and bonuses.
JPMorgan took over the failed bank last week, purchasing about $173 billion of loans and nearly $30 billion of securities. Further, the Wall Street giant bought $92 billion of deposits from First Republic.
The acquisition came after investors lost faith in First Republic's recovery, and the bank's shares plummeted. Its market value tanked from $20 billion to $557 million on the last trading day before JPMorgan's takeover.
The US Securities and Exchange Commission (SEC) is investigating whether First Republic Bank executives were engaged in any insider trading activities before the government seizure and sale of assets to JPMorgan Chase, Bloomberg reported citing people familiar with the matter.
More Troubles for First Republic?
San Francisco-headquartered First Republic was seized by the California Department of Financial Protection and Innovation early last week, and the majority of its assets, including deposits, were brought by JPMorgan Chase in a rushed bidding process.
The collapse of the regional bank came with the continued outflow of deposits from the bank. Depositors took out over $100 million last March, following over $176 million outflow in 2022.
The troubles in the bank started when two other American banks, Signature Bank and Silicon Valley Bank, collapsed earlier this year. Then, First Republic received a lifeline deposit of $30 million from a consortium of 11 large banks, including JPMorgan Chase. However, that turned out to be ineffective as the bank's revenue in the first quarter went down 13.4 percent year-over-year to $1.2 billion. Also, its net interest income declined 19.4 percent to $923 million, and its net income went down 32.9 percent to $269 million.
Lawmakers Raising Questions
Though not officially confirmed, the report of the SEC's probe came a day after US Senator Elizabeth Warren accused First Republic executives of "mismanagement" in her letter to the bank's former CEO, Michael Roffler. In addition, she raised questions about the bank's risk management and executives' pay and bonuses.
JPMorgan took over the failed bank last week, purchasing about $173 billion of loans and nearly $30 billion of securities. Further, the Wall Street giant bought $92 billion of deposits from First Republic.
The acquisition came after investors lost faith in First Republic's recovery, and the bank's shares plummeted. Its market value tanked from $20 billion to $557 million on the last trading day before JPMorgan's takeover.
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
Capital.com Hits $1.2 Trillion in Client Trading Volumes, Sees 53% Surge
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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