JPMorgan Chase & Co has told clients with personal credit lines at First Republic Bank (OTC:FRCB) that it will no longer offer them when they come up for renewal, a person familiar with the matter told Reuters on Thursday.
The bank does not offer personal lines of credit and therefore has no plans to offer them to former First Republic clients when they come up for renewal, the source said.
Regulators seized First Republic and sold its assets to JPMorgan (NYSE:JPM) in early May, in their move to resolve the largest U.S. bank failure since the 2008 financial crisis.
First Republic’s business model was to lure high net-worth customers with preferential rates on mortgages and loans. Its storied client base included Instacart founder Apoorva Mehta, investor Chamath Palihapitiya and real estate developer Stephen M. Ross, according to the bank’s promotional materials.
Read More : JPMorgan to Discontinue Renewal of Personal Credit Lines for First Republic Customers, According to Source