- As investors evaluated JPMorgan's successful offer to acquire crisis-hit lender First Republic Bank, US stock futures remained stable and Treasuries fell in cautious trade.
- After the S&P 500 index increased by 0.8% on Friday to cap gains for the week and back-to-back months, contracts for the index saw little movement. The Nasdaq 100's tech-heavy contracts decreased somewhat. For a holiday, many important markets in Europe and Asia were closed to trading.
- First Republic Bank's stock was suspended after falling 46% in premarket trading. Before announcing that JPMorgan had won the bid to buy the lender in an urgent government-led intervention, regulators in Washington laboured into the evening on Sunday. Private rescue efforts had been unsuccessful in repairing the harm caused by bad investments and depositor runs that had troubled local institutions.
- The assets of First Republic, which total $92 billion in deposits, $173 billion in loans, $30 billion in securities, and more, will be acquired by JPMorgan. JPMorgan and the Federal Deposit Insurance, which oversaw the sale, have agreed to split any losses and gains on the company's single-family and commercial loans, the agency said in a statement early on Monday. Shares of JPMorgan increased 2.7% in premarket trading.
- After a Friday gain, Treasury prices modestly declined. The dollar and the Australian dollar rose, while the yen fell. After a spectacular year, Bitcoin's abrupt decline sent the cryptocurrency farther lower, below $30,000.
- Both gold and oil prices decreased.
- The FDIC accepts the bid from JPMorgan for First Republic Bank.
- The ECB is still inclined to raise interest rates by 25 basis points this week.
- FDIC: In addition to assuming all of its deposits, JPMorgan agreed to purchase substantially all of First Republic Bank's assets.
- JPMorgan: We will make a payment of $10.6 bln to the FDIC on First Republic. $JPM