If there was ever a time that demonstrated JPMorgan’s credentials as the country’s best bank, it was the crisis in March and April 2023 when US regional banks suddenly faced a balance sheet reckoning triggered by the rapid change in interest rates.
That it was JPMorgan that authorities turned to at the end of April for the lowest-cost solution to a struggling First Republic Bank was no surprise.
JPMorgan chief executive Jamie Dimon takes a pragmatic view of these kinds of situations, seeing it as often worth bidding for failing banks to avoid having to contribute to a higher-cost alternative when the next Federal Deposit Insurance Corporation (FDIC) assessment is levied to top up the industry’s rescue funds.
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