JPMorgan culling First Republic Bank’s personal credit lines – The Information

The Information reported on Thursday, citing correspondence it had seen, that JPMorgan Chase & Co (NYSE:JPM) had informed customers with personal credit lines at First Republic Bank (OTC:FRCB) that it will no longer offer those when they are up for renewal.

According to the article, the impacted consumers can convert their revolving credit lines into fixed-term loans at the same rate for up to five years. First Republic asks customers whether they would rather pay down their credit lines.

First Republic’s business model was to lure high net-worth customers with preferential rates on mortgages and loans.

JPMorgan did not immediately respond to a Reuters request for comment.

As part of their effort to deal with the biggest failure of an American bank since the 2008 financial crisis, regulators seized First Republic and sold its assets to JPMorgan in early May.

First Republic was one of the regional U.S. lenders most severely impacted by the March banking sector confidence crisis when depositors fled in droves after being alarmed by the failure of two mid-sized banking rivals.