JPMorgan Chase to close 21 First Republic bank branches after takeover

• JPMorgan Chase is closing 21 First Republic Bank branches.
• JPMorgan took over First Republic after is was seized by the government last month.
• What will happen to employees at those branches?

JPMorgan Chase will close 21 First Republic banks. Bad news for some First Republic bankers as it was just announced that 21 branches will be closed after the bank’s collapse last month.

According to The Sun, JPMorgan Chase will close 21 First Republic Bank branches by the end of the year. This comes after the government seized the regional bank.

JPMorgan to close 21 First Republic branches in 8 states

The Sun reported that a JPMorgan spokesperson said: “These locations have relatively low transaction volumes and are generally within a short drive from another First Republic office. Clients should expect to continue to receive the same level of service with seamless access to their money.»

JPMorgan has promised that 100 employees employed at those branches will be offered commensurate jobs at other branches.

Many people could lose their jobs

Over the next six months, those 100 employees will be transitioned from First Republic to JPMorgan Chase, according to the Sun.

Unfortunately, 1,000 people who worked at First Republic have already been laid off. The Sun has reported that they currently have 13,000 vacancies. JPMorgan made the deal to acquire the ailing bank in April.

JPMorgan’s CEO speaks about the acquisition

JPMorgan’s CEO, Jaime Dimon spoke about the deal: “Our government invited us and others to step forward, and we did.» However, later he stressed that the decisions that are being made will benefit the company.

«This acquisition modestly benefits our company overall, it is accretive to shareholders, it helps further advance our wealth strategy, and it is complementary to our existing franchise,» he stated according to The Sun. JP Morgan is one of the largest banks in the United States.

Aiming to improve technology

Reports indicate that these changes are being made with the aim of improving technology throughout the company and they are investing a lot of capital into it. “Large companies are always transforming. We are adding and subtracting,» Dimon said.

He added, «Unfortunately, mortgage can be a very tough business and very volatile. You have seen some cuts in the mortgage area. For the most part, we’re expanding.»