JPMorgan (JPM) CEO Jamie Dimon is often asked for his opinions about finance issues and trends.
The fact that his company purchased troubled First Republic Bank on May 1 turned the subject of new questions for Dimon to the recent failures in the industry.
DON'T MISS: First Republic Sold to JPMorgan in Latest U.S. Bank Collapse
In an analyst call after the sale, Dimon was asked if this was the end of the acute liquidity issues that had harmed banks such as First Republic Bank and Silicon Valley Bank.
"Dimon says he thinks the banking system is 'stable,'" reported Bloomberg in a tweet. "'This part of the crisis is over,' he says, though other risks linger. He recommends that for now, we take a 'deep breath.'"
Wells Fargo (WFC) analyst Mike Mayo seemed to agree. The deal helps "bring the bank crisis phase to the home stretch," he said, according to Bloomberg.
"Our government invited us and others to step up, and we did," said CEO Jamie Dimon. “Our financial strength, capabilities and business model allowed us to develop a bid to execute the transaction in a way to minimize costs to the Deposit Insurance Fund."
“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," Dimon added.
First Republic shares were marked 35% lower in pre-market trading but were halted before opening on the NYSE, while JPMorgan shares gained 2.4% to $141.48.
David Chiaverini, a Wedbush analyst, said the deal was a good one for JPMorgan.
First Republic Bank was "the 'Diamond of the Season' of the FDIC-assisted deals over the past two months given its high net worth client base," Chiaverini said, according to Bloomberg.
Questions about First Republic Bank's branding going forward were also addressed on the call.
"JPMorgan won’t keep the First Republic name," Bloomberg reported. "Instead, the bank will rebrand some wealth centers, with First Republic’s platforms and systems integrated into JPMorgan’s existing ones."
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