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.
When a bank fails, it means significant problems in how the institution had been run and with its current financial state. Every sale of a failed bank is something unto itself, with negotiations responsible to see what assets and deposits will transfer to the buyers.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
