© Reuters. File photo: Exterior of JPMorgan Chase headquarters in New York City on May 20, 2015.Reuters/Mike Seeger
(Reuters) – JPMorgan Chase & Co. has informed some employees that: First Republic Bank (OTC:) They are not getting jobs, even temporarily, as they set out to consolidate failed financial institutions, a person familiar with the matter told Reuters on Thursday.
The bank offers interim or full-time employment to nearly 85% of First Republic employees, the person said. Temporary workers are expected to work for three months to one year, depending on their occupation.
“We have kept our commitment to being transparent with our employees and updating them on their employment status within 30 days,” JP Morgan (NYSE:) said in an emailed statement.
Regulators seized First Republic in early May and sold its assets to JP Morgan in an effort to settle the largest U.S. bank failure since the 2008 financial crisis.
First Republic was hit hardest by the banking sector crisis in March. Frightened by the bankruptcy of two medium-sized financial firms, depositors fled en masse.
As the bank tried to bounce back from the turmoil, its outflow of more than $100 billion in the first quarter was revealed, and its plans to explore new options led to a fire sale by shareholders.
Bloomberg News was the first to report the job losses.
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