Bank recruits numerous ex-employees from First Republic for expansion in high-end client services
In a significant move, US Bank Flagstar Bank, a subsidiary of the New York Community Bank, has announced that it is onboarding six teams of private-client bankers from the failed First Republic Bank. These teams, renowned for their expertise, are expected to join Flagstar following the acquisition by JPMorgan Chase in May.
The six teams, consisting of some of the best in the industry, will serve a diverse clientele including entrepreneurs, high-net-worth individuals, private-equity and venture-capital firms, business managers for professional athletes, high-end realtors, and developers. Three of these teams will be based in New York City, while the remaining three will operate from the West Coast.
Flagstar's CEO, Thomas Cangemi, expressed his delight at the new hires, stating that the fact these teams chose to join Flagstar is a testament to their business model and strong reputation in the marketplace. The bank looks forward to welcoming the clients of these teams and providing them with exceptional banking services.
Meanwhile, JPMorgan Chase, the new owner of First Republic Bank, has announced its plans to employ the bankers from the failed institution. However, it has been reported that approximately 1,000 First Republic employees will not receive employment offers from their new management, with 21 branches set to close by the end of this year, representing about a quarter of the failed bank's brick-and-mortar presence.
Elsewhere, Citizens Bank has also made moves to expand its wealth-management presence and business banking footprint. It has hired approximately 50 senior private bankers from First Republic, although the commercial aspect of this hiring is not explicitly mentioned.
The purchase of First Republic Bank by JPMorgan Chase included $38.4 billion in assets, $25 billion in cash, $12.9 billion in loans, and 40 former Signature branches. The deal was finalised in March, with Flagstar buying much of Signature Bank's remains for $2.7 billion.
These developments underscore the ongoing consolidation in the banking sector, as institutions seek to strengthen their positions and capitalise on the expertise of their competitors.
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