May 1, 2023
Jason Diamond Quoted
By Victoria Zhuang
JPMorgan Chase began wooing First Republic’s flighty wealth advisors on Monday immediately after it took over a substantial chunk of the faltering institution.
America’s largest bank promised the advisors, whom it is integrating into J.P. Morgan Advisors, the safety and resources of a top financial institution. The love bombing campaign comes after
JPMorgan Chase Chairman and CEO Jamie Dimon said in an investor call Monday that he would hold a call later in the day with First Republic wealth advisors to pitch them on staying put. He added that the bank had also flown out top executives on planes this morning at 6 and 7 a.m., including the CEO of J.P. Morgan Wealth Management Kristin Lemkau, to hold “town halls” and reassure First Republic staff of their place in the new organization.
Jason Diamond, another industry recruiter, said some advisors might seek to move because they had already found a better option elsewhere, but he thought most would be “thrilled that they finally have some clarity, and a resolution here. And not just any resolution, it’s one of the best, if not the single best brand names on the street.”
Diamond said he perceived that overall it seemed the two firms “both had quality brands, strong platforms, good technology, good investment platforms,” although First Republic operated “more flatter and nimble” than most Wall Street firms. “They had great direct communication and lines of dialogue with senior leadership.”
Even more importantly, clients’ faith in the business is likely restored. “Their clients can wake up and breathe a sigh of relief, knowing that their assets are going to be safe,” Diamond said.
Although the collapsed bank’s wealth clients’ assets were already safe in custody with Pershing, the negative perception of seeing their advisors’ bank in the news day after day has taken a toll on customer confidence, Diamond said, although he declined to say if he was working with any First Republic advisors as clients.
“I think certainly you are going to see this move, this transaction between First Republic and JP Morgan stem the tide that we’ve seen of attrition.”
