With First Republic Takeover, JPMorgan Is America’s Most Globally Systemically Important Bank

First Republic Bank is dead! Long live JPMorgan! JP Morgan’s acquisition of failed First Republic Bank
FRC
makes it the most globally systemically important bank (G-SIB) in the U.S. In the Financial Stability Board’s list of GSIBs, JPMorgan will now be number five, only after the four Chinese G-SIBs.

JPMorgan’s role in the American financial industry harkens the days of J.P. Morgan rescuing the U.S. government in 1895 and later saving banks in 1913. While JPMorgan’s acquisition of First Republic may placate markets momentarily, it should bring up important discussions for U.S. legislators, policy makers, and bank regulators. Clearly, the Too Big To Fail problem is now worse than it was in the years running up to the 2007-2009 financial crisis.