JPMorgan Chase CEO says bank has 10,000 people working on First Republic integration

JPMorgan Chase CEO Jamie Dimon said the bank has an estimated 10,000 people working on the integration of First Republic Bank, which it acquired in a $13.4 billion deal that was announced last month.

JPMorgan Chase CEO says bank has 10,000 people working on First Republic integration

JPMorgan Chase CEO Jamie Dimon gave an update at the bank's Investor Day on Monday on the integration of First Republic Bank. The bank acquired the San Francisco-based bank after it failed on May 1, and regulators seized the bank.

The Federal Deposit Insurance Corp. selected Chase (NYSE: JPM), which had 800 employees working on the due diligence of the First Republic transaction, as the buyer for the San Francisco Bank.

I would estimate that 10,000 people are working on this now -- opps., risk, legal., systems., credit. Commercial bank. Retail bank. Chase wealth management. Comp plans. Dimon stated that it was a lot to do.

First Republic Bank, which has a strong customer service department, is a model that Chase will learn from.

Jennifer Piepszak is co-CEO at JPMorgan Chase and she said, "We have admired First Republic for their culture of customer service. Their model complements ours." Piepszak, the co-CEO of community banking and Marianne Lake are in charge of the First Republic integration. We look forward to incorporating all the best features of First Republic, including their cookies, into our franchise.

Chase refused to give me any details when I asked him Monday where First Republic's fresh-baked cookies, which are so popular with consumers, will appear in the future.

Chase also notes that First Republic's success in customer service was not only due to cookies but also to relationship managers, preferred banks and client-service experts.

All of them serve their clients, and many are the quarterbacks for those clients. Lake explained. "We're trying to figure out how we can bring them in our businesses without compromising the best aspects of their work."

Piepszak stated that First Republic branches had been examined in detail. We will close a small number of First Republic branches in the short term due to their proximity.

Piepszak stated, "It's important to remember that the majority of First Republic branches will remain First Republic until we convert our back-end systems." Once this happens, branches will be divided into three categories: Some will be closed due to their close proximity to existing Chase branch locations, and others will become Chase branches if they are in a more convenient location.

Peipszak stated that he was excited to have the chance to create private customer centers at some of their other branches.

Dimon said that he had also gained a better understanding of how deeply Silicon Valley Bank had been embedded in the startup eco-system before the collapse of the bank on March 10.

Dimon praised the bank's strong connections with venture capitalists, and its 35,000 companies. We did the work. My first reaction was: "Why hadn't we done this work earlier?

Dimon stated that he did not realize the depth to which they were embedded in the system. We always complained that we couldn't get into venture capital. They did an excellent job.

Chase continues to profit from the flight to security in the banking sector, despite the First Republic merger.

JPMorgan Chase provided some insights into its own experiences amid a stampede to financial institutions deemed too large to fail banks during the banking crisis.

Mary Callahan Erdoes is the CEO of Asset and Wealth Management at JPMorgan Chase.

This usually accelerates in times of crisis. At this point, year-to date, the private bank is receiving four clients with $100 million a day.

Erdoes stated, 'I do not think this will last'. It shows the amount of money that is moving in the private banking sector.

Dimon, on a wider front, warned that the Federal Reserve may move interest rates higher still and that further credit tightening in later this year might lead to "stranded borrowers."

Dimon concluded a series presentations made by JPMorgan Chase executives at its Investor Day conference.

He said that some lenders will not extend credit to borrowers in certain markets, particularly for loans on commercial real estate, such as office buildings.

Dimon stated that "it will cause problems and leave stranded borrower." "Stranded lenders may benefit us."

'I believe everyone should be ready for rates to go higher from here. I think that there is a possibility you could see rates ticking upwards, and not just at 3.78. Dimon spoke of rates for long-term loans. "I'm talking 4.25, 4.55, 5, 6, heck maybe even 7," Dimon said. Wells Fargo analyst Mike Mayo stated on CNBC later that day that Dimon is referred to as the "worrier-in-chief".