JP Morgan's Acquisition of First Republic Bank

The FDIC will get around $60.6 billion to pay back the Fed plus roughly $15 billion in cash and roughly $4 billion of other assets that are still left over at First Republic for a total of around $80 billion. The FDIC is agreed to bear 80% of the credit losses on First Republic's mortgages and commercial loans. Jamie Diamond, the CEO of JP Morgan said his firm had switched sides from being an advisor to First Republic to being the buyer only after the government asked the bank to step up.