In the closing of First Republic Bank by the Federal Deposit Insurance Corporation and its sale to JPMorgan Chase, there was mention of a loss-share transaction for loans.

Both the FDIC and JPMorgan Chase will share costs and potential recoveries from single family, residential, and commercial loans that the bank bought from First Republic. According to the FDIC, the Shared Loss Agreement (SLA) along with the Purchase and Assumption agreement (P&A) are part of the resolution transaction for a failing bank.


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Erik Sherman

GlobeSt

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