First Citizens Is Buying Most of Silicon Valley Bank's Assets -- Shares Are Rocketing Higher
Shares of First Citizens BancShares (NASDAQ: FCNCA) ripped nearly 48% higher as of 11:48 a.m. ET after the company announced it had acquired all of Silicon Valley Bridge Bank's deposits and loans in what looks to be an incredibly attractive deal. The bridge bank was created by the Federal Deposit Insurance Corp. (FDIC) after it took Silicon Valley Bank into receivership earlier this month.
This deal is very complex and has several components to it.
The FDIC estimates that the failure of SVB will result in a $20 billion loss to the FDIC's Deposit Insurance Fund, which had about $128 billion at the end of 2022. The fund is paid for by insured financial institutions themselves, through quarterly assessments.
Source Fool.com
