Can we breathe a sigh of relief now? The impact of First Republic Bank takeover by JP Morgan on the US equity markets

•This paper investigates the effects of the takeover of First Republic Bank (FRB) by JP Morgan.•The results from an event-study approach reveal that this acquisition exerts no significant impact on US equity markets.•The results indicate that these markets in the US are relatively immune to extreme shocks.•The results also indicate that markets in the US could act as a safe haven for investors during times of high uncertainty. This paper investigates the effects of the takeover of First Republic Bank (FRB) by JP Morgan Chase on different US equity indices. Results from an event-study approach reveal that this acquisition exerts no significant impact on US equity markets, indicating that these markets in the US are relatively immune to extreme shocks and therefore, could act as a safe haven for investors during times of high uncertainty.