Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, May 5, 2023

Article Excerpt

J.P. MORGAN CHASE & CO., $136.74, New York symbol JPM, remains a buy. The stock lets investors tap the largest banking firm in the U.S., with total assets of $3.74 trillion as of March 31, 2023. This week, Morgan agreed to acquire most of the assets and deposits of California-based First Republic Bank, as well as some of its liabilities, from the U.S. Federal Deposit Insurance Corporation (FDIC). The FDIC took control of First Republic after it reported over $70 billion in deposit outflows in the first quarter of 2023. That severely hurt its ability to continue. Under the terms of the purchase, Morgan will pay $10.6 billion for most of First Republic’s remaining $92 billion in deposits. That includes $30 billion that big banks (including $5 billion from Morgan) recently deposited in First Republic under a government-led stabilization plan. It will return $25 billion of those deposits to those other banks once it completes the deal. Morgan will also acquire $173 billion in loans and…