First Citizens Shares Soar After Announcing Deal to Buy Failed Silicon Valley Bank

Contact Your Elected Officials
The Epoch Times Header

The share price of First Citizens Bank has soared this week following news that it would buy much of the failed Silicon Valley Bank (SVB) in the wake of its collapse.

The bank, one of the nationโ€™s largest regional financial institutions, saw its shares reach a record high on March 28, rising by as much as 7.2 percent and briefly hitting an all-time peak of $959.99, before paring gains.

As of March 29, shares are up more than 20 percent, extending gains for a third day.

The Raleigh, North Carolina-based bank announced Monday that it is buying the loans and deposits of failed SVB after entering into a purchase and assumption agreement.

SVB was the sixteenth largest bank in the United States, with $209 billion in assets as of Dec. 31, 2022, according to the Federal Reserve. Its collapse subsequently put pressure on other small and regional banks in the United States, including Signature Bank and First Republic.

According to a statement issued by First Citizens Bank, the institution will assume SVB assets of $110 billion, deposits of $56 billion, and loans of $72 billion.

In addition, First Citizens Bank will receive a line of credit from the Federal Deposit Insurance Corporation (FDIC) for contingent liquidity purposes and will have an agreement with the regulator to share some losses on commercial loans to provide further downside protection against potential credit losses.

SVBโ€™s Expensive Failure

First Citizens Bank will not acquire any of the assets, common stock, preferred stock, or debt, or assume any other obligations of SVB Financial Group, according to the statement.

According to a separateย statementย by the FDIC, around $90 billion in SVB assets will remain in receivership with the FDIC, which received around $500 million in First Citizens stock. Theย 17 former branches of SVB opened as First Citizens Bank & Trust Company on March 27.

The FDIC said the deal will cost the independent agency aroundย $20 billion, although the exact cost will be determined once the FDIC terminatesย the receivership.

Byย Katabella Roberts

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

The Sacred Honor of the 56

Today we're celebrating the sacred honor of the 56 men who signed the Declaration of Independence.

Alligator Alcatraz: A Bold Step Toward Secure Borders

Alligator Alcatraz funded through FEMA, represents a decisive move by the Trump admin to address illegal immigration with efficiency and resolve.

Is America Broke?

Silicon Valley investor and economic commentator Balaji Srinivasan made...

Hungary: Prideโ„ข Cometh Before the Color Revolution

The EU engaged in a diplomatic siege of the Eastern European nation-state of Hungary pressuring it into embrace global trannyism or face wrath of Brussels.

Understanding the Trump/Musk Feud

The passion Trump and Musk exhibit over the OBBB is not contrived or for show. Each is addressing the problem from completely different approaches.

New White House Faith Office Aims to Ensure US Is Beacon of Freedom for Others

The White House Faith Office wants to see the United States as the leader in advancing religious freedom, its faith director Jennifer Korn said.

Federal Reserve Rates Are Too High, Says Former World Bank Chief

Rates should be between 0.25 and 1.75 percent rather...

Newly Naturalized Citizens Say What American Freedom Means to Them

Nearly 820,000 people pledged allegiance to the United States and became naturalized citizens in 2024.

Noem Waives Environmental Restrictions to Fast-Track Water Barriers in Rio Grande

DHS Sec Kristi Noem waived federal environmental laws to fast-track construction of 17 miles of waterborne barriers in the Rio Grande in South Texas.

US Keeps Pressure on Chinese Goods Amid Vietnam Trade Deal

Transshippingโ€”rerouting goods through a third country to disguise the origin of the productsโ€”is a focal point of trade negotiations with Asian markets.

White House Report Reveals Top Earners, Staffers Working for No Salary

The Trump admin released its yearly report that shows the salaries for White House staffers, also revealing officials who arenโ€™t accepting salaries at all.

Transportation Secretary Urges Governors to Remove Political Messages From Crosswalks, Intersections

Duffy sent letters to governors, mayor of D.C., and gov of Puerto Rico urging them to remove political messaging from intersections and crosswalks.

Bessent: US, India Near Agreement to Lower Tariffs

The United States and India are โ€œvery closeโ€ to a trade agreement, Treasury Secretary Scott Bessent said on Tuesday.
spot_img

Related Articles