First Citizens to Acquire Silicon Valley Bank in Government-Backed Deal

New York Times ^ | March 27, 2023 | Lauren Hirsch

[SunkenCiv]

...The deal for the bank... included the purchase of about $72 billion in loans, at a discount of $16.5 billion, and the transfer of all the bank's deposits, worth $56 billion. Roughly $90 billion in Silicon Valley Bank's securities and other assets were not included in the sale, and remained in the F.D.I.C.'s control.

Silicon Valley Bank had roughly $175 billion in deposits before its collapse, an illustration of how extensive the withdrawals were before it was seized by regulators...

As part of the deal, the F.D.I.C. will receive rights linked to the stock of First Citizens, which could be worth up to $500 million. The bank regulator estimated that the cost of Silicon Valley Bank's failure to the government's deposit insurance fund would be around $20 billion.

First Citizens and the F.D.I.C. will share in any losses on the loans included in the transaction, in an arrangement that often features in sales of failed banks. For example, the F.D.I.C. agreed to reimburse First Citizens for half of any losses above $5 billion on the portfolio of commercial loans transferred in the deal...

On March 19, New York Community Bancorp acquired parts of the defunct Signature Bank a week after the F.D.I.C. seized its operations. The deal included around $38 billion in assets, including $12.9 billion in loans, purchased at a discount of $2.7 billion. Roughly $60 billion of Signature's loans were not included in the deal, and the F.D.I.C. estimated that the bank's collapse would cost the government's deposit insurance fund about $2.5 billion.

Around the same time, Switzerland's largest bank, UBS, agreed to buy its beleaguered smaller rival Credit Suisse for about $3.2 billion, in a deal hastily arranged by the Swiss government...

[SunkenCiv]

First Citizens Bank agreed to buy all deposits and loans of Silicon Valley Bank after it was seized by regulators following a run on the lender, according to a statement from the Federal Deposit Insurance Corporation. Russell Ward reports on Bloomberg Television.

First Citizens Buys Silicon Valley Bank Deposits, Loans | Bloomberg Television | 1:44 | 1.49M subscribers | 7,666 views | March 27, 2023

[SunkenCiv]

My internet seems to be running a bit slow today, which gave me time to highlight all and copy the whole before the paywall came down. If you've missed your chance, try deleting cache and reloading the page.

[Red Badger]

Government backed, or Government mandated?.......................

[SunkenCiv]

$175 billion of deposits cratered to $56 billion before the FDIC got off its ass.

[E. Pluribus Unum]

It’s a trap.

[Brian Griffin]

$72 billion (worth $56 billion) of assets transferred

$90 billion of assets retained by FDIC

[Brian Griffin]

It appears to be a North Carolina-based bank.

[Red Badger]

Guaranteeing those deposits, even those above the $250k limit, will do wonders to inflation!.............. Like putting out a fire with gasoline................

[woodbutcher1963]

First Citizens established 1989 in Raleigh, NC.

Not to be confused with Citizens Bank out of Providence, RI.

[dfwgator]

Or “Fred’s Bank”.

“Hi, I’m Fred. I have a bank. You got $1500? I’ll put it ahhh here, in my white suit...white suit, front pocket.”

[Toddsterpatriot]

Guaranteeing those deposits, even those above the $250k limit, will do wonders to inflation!........

What will it do to inflation? Why?

[SunkenCiv]

O'Leary Ventures Chairman Kevin O'Leary raises moral hazards and 'unintended consequences' from regulators' bailout of Silicon Valley Bank.

'Shark Tank' star trashes Silicon Valley Bank: 'Poster boy for doing stupid things'
9:02 | Fox Business | 2.13M subscribers | 191K views | 12 days ago

[SunkenCiv]

CNBC's Hadley Gamble reports on the resignation of Ammar Al Khudairy, chairman of Credit Suisse's largest shareholder Saudi National Bank.

Saudi National Bank chairman resigns after Credit Suisse debacle
CNBC International TV | 4:33 | 331K subscribers | 13,716 views | March 27, 2023

[jjotto]

Bob’s Bank

Look for the green mobile home.

“Neither a borrower or a lender be.”

[Red Badger]

Create another 175 BILLION dollars right out of thin air, making YOUR dollars worth even less than than they already are......................

[SunkenCiv]

No, it won’t. Depositors didn’t pull their money to go on a wild spending spree, they put it into other banks.

[SunkenCiv]

Kevin O’Leary shreds SVB’s brand as ‘radioactive waste’
Fox Business
2.13M subscribers
33,988 views Mar 15, 2023
O’Leary Ventures Chairman Kevin O’Leary shreds Silicon Valley Bank management following the collapse on ‘Kudlow.’
https://www.youtube.com/watch?v=l0Nb97CvX-c

Kevin O’Leary breaks down SVB collapse: ‘We should not have done this’
Fox News
10.4M subscribers
228,883 views
Premiered Mar 14, 2023
‘Shark Tank’ co-host and O’Leary Ventures Chairman Kevin O’Leary calls out Biden’s ‘knee-jerk’ response to the Silicon Valley Bank collapse.
https://www.youtube.com/watch?v=9b1z4OpWjNc

[DoodleBob]

First Citizens is owned and controlled by the Holding family.

[Red Badger]

How many people or corporations actually made it out the door with their money before the feds closed the doors?

This isn’t about saving the ‘Little Guy’s savings’ it’s about the millions of corporate dollars that went poof....................

[SunkenCiv]

‘Shark Tank’ star shares biggest lesson from the SVB collapse
CNN
14.9M subscribers
245,261 views
March 13, 2023
Kevin O’Leary, chairman of O’Leary Ventures and host on “Shark Tank,” gives his takeaways on what led to the collapse of Silicon Valley Bank and how it will affect customers and investors.
https://www.youtube.com/watch?v=0ns9d9b5V8Q