In the hours after JPMorgan Chase bought troubled First Republic Bank for $10.6 billion in a government fire sale, its consumer banking chiefs Marianne Lake and Jennifer Piepszak—both potential successors to CEO Jamie Dimon—flew to California. What they found when they arrived the morning of May 1 was startling: The business JPMorgan bought was hamstrung by a tangle of old tech systems that held together a patchwork of hundreds of individual applications enabling basic tasks such as depositing and lending.
Since then, JPMorgan has been trying to straighten out First Republic’s tech and migrate an enormous amount of data to integrate the bank, its biggest acquisition since it bought Washington Mutual and Bear Stearns during the financial crisis. JPMorgan hired big-name external consulting firm McKinsey and other consultants to sit within First Republic’s four walls and help integrate the systems by a late 2024 deadline, according to people familiar with the matter. Meanwhile, the bank also faces a more classic challenge of merger integration: First Republic is trying to keep key bankers—and thus its high-net-worth clients—from leaving.
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