SVB/FDIC: favours for saviours ensure rescues ensue

First Citizens Bancshares jumps 50% after taking over defunct tech lender Silicon Valley Bank. The Federal Deposit Insurance Corporation provided a subsidy to make the bulk of SVB somebody else's problem.

March 28, 2023 . 12:29 PM

1 min read

First Citizens Bancshares jumps 50% after taking over defunct tech lender Silicon Valley Bank.
It absorbed a $72bn loan book and $56bn of remaining deposits at a $16bn discount to net asset value.
The Federal Deposit Insurance Corporation provided a subsidy to make the bulk of SVB somebody else's problem.
First Citizens negotiated protections from two risks and gets a shot at operating the premier local bank in one of America's most desirable locales.
Shares of First Citizens and NYCB rallied sharply after each took on assets of seized banks at substantially discounted valuations.