JP Morgan Chase, the prominent Wall Street institution, is implementing job cuts at recently acquired First Republic Bank, which faced financial difficulties. Approximately 1,000 positions, equivalent to 15% of First Republic's workforce, will be eliminated, according to sources familiar with the matter.This week, First Citizens, the buyer of another struggling financial institution's US unit, also announced job reductions.

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Earlier this year, concerns arose about a potential broader crisis when problems emerged within US regional banks.JP Morgan confirmed the job cuts but did not disclose the exact number of positions affected. Affected employees will receive 60 days of pay and benefits, along with a comprehensive severance package including a lump sum payment and other perks.

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JP Morgan further expressed its commitment to assisting affected employees in finding new roles either within the company or externally."Since our acquisition of First Republic on May 1, we've been transparent with their employees and kept our promise to update them on their employment status within 30 days," a JP Morgan spokesperson said in a statement.

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"We recognise that they have been under stress and uncertainty since March and hope that today will bring clarity and closure," the spokesperson added.First Republic, which was known for its big home loan business and stable of wealthy clients, was the 14th largest lender in the US at the end of last year. It was worth more than $20bn (£16.2bn) at the beginning of April.

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However, it came under pressure after the collapse of several lenders in the US, including the technology-focused Silicon Valley Bank (SVB), sparked fears about the state of the banking system.Later in April, First Republic said it had lost around $100bn in deposits as customers moved to withdraw their funds.Earlier this month, JPMorgan said it would pay $10.6bn to take over First Republic in a deal brokered by regulators.

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In the wider market, there were also concerns about the value of bonds held by banks as rising interest rates made those bonds less valuable.The failure of First Republic is the second-largest in US history. Earlier this month, the bank's 84 offices in eight states reopened as branches of JP Morgan Chase Bank after regulators seized control and sold it to the Wall Street institution.

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Meanwhile, SVB's US operations were taken over by First Citizens, as its business in the UK was bought by by London-headquartered banking giant HSBC.First Citizens is also planning to cut around 500 roles held by former SVB workers, the BBC understands.

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In an email seen by the BBC this week, First Citizens' chief executive Frank Holding highlighted the problems faced by SVB earlier this year and said the cuts will affect: "select SVB corporate functions and do not include any personnel in client-facing positions."

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