Banking institution Flagstar employs multiple veterans from First Republic in an effort to augment its private-client services.
In a series of moves that signal a significant shift in the banking industry, major financial institutions are scooping up talent and assets from the failed First Republic Bank.
JPMorgan Chase, one of the world's leading financial services firms, announced its decision to close 21 First Republic branches, marking a strategic change following its acquisition of the struggling bank in May. The acquisition included $38.4 billion in assets, $25 billion in cash, $12.9 billion in loans, and 40 former Signature branches.
However, it remains unclear whether Citizens Bank will purchase any assets or branches from First Republic. What is known is that Citizens Bank has hired approximately 50 senior private bankers from First Republic to expand its wealth management presence and business banking footprint. The bank's CEO has not disclosed the specific roles or locations of these new hires.
Meanwhile, Flagstar Bank, a subsidiary of the New York Community Bank, has made a significant move by onboarding six teams of private-client bankers from First Republic. These teams are renowned for their excellence in the industry, and their decision to join Flagstar Bank, N.A., is seen as a testament to the bank's strong reputation and business model.
NYCB CEO Thomas Cangemi expressed his enthusiasm, stating, "The fact that these teams opted to join Flagstar Bank, N.A., is a testament to their business model and strong reputation in the marketplace."
While the 1,000 First Republic employees not offered employment by JPMorgan Chase received notifications, the article does not provide information about their future employment prospects. Similarly, the locations of the 21 First Republic branches that JPMorgan Chase plans to close remain undisclosed.
The hiring of First Republic bankers by Citizens Bank and Flagstar Bank is not an isolated incident. After the failure of First Republic Bank in 2023, its bankers were hired by other financial institutions, but the specific names of the employers or who exactly hired these bankers are not detailed in the available sources.
As the dust settles on the collapse of First Republic, it is clear that other banks are capitalising on the opportunity to strengthen their teams and expand their reach. The future of the banking industry remains uncertain, but one thing is clear: the competition for top talent and assets is heating up.
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