Silicon Valley Bank Financial in talks to sell itself after attempts to raise capital have failed
- Thread starter gwb-trading
- Start date
Silicon Valley Bank was under scrutiny by the Fed for over a year for risky practices and the bank received repeated warnings. It wasn’t enough.
The bank was using an incorrect model as it assessed its own risks amid rising interest rates, and spent much of 2022 under a supervisory review.
Sunday, March 19, 2023 12:08 PM ET
https://www.nytimes.com/2023/03/19/business/economy/fed-silicon-valley-bank.html
The bank was using an incorrect model as it assessed its own risks amid rising interest rates, and spent much of 2022 under a supervisory review.
Sunday, March 19, 2023 12:08 PM ET
https://www.nytimes.com/2023/03/19/business/economy/fed-silicon-valley-bank.html
There is a regional bank in our Raleigh area of North Carolina which is considering taking over the remnants of SVB -- which is interesting because First Citizens is a stodgy, old-fashioned, traditional bank.
While our RTP area does have a significant start up scene. The local start-up economy is centered in downtown Durham and nearly all the companies use Square One (now part of Pac West) for their banking and VC associations. It sounds like First Citizens wants to muscle in on this business.
What does Raleigh’s ‘boring’ bank want with Silicon Valley?
https://news.yahoo.com/open-source-does-raleigh-boring-122135310.html
Banking is best when it’s boring, the saying goes. By that standard, banking is not currently at its best. The collapse of Silicon Valley Bank earlier this month has the global banking system on edge, and as the dominoes fall, the North Carolina Triangle has plenty to gain or lose.
Banking news in the state usually revolves around Charlotte. The Queen City is home to Bank of America and Truist Bank. Wells Fargo, while headquartered in San Francisco, has a sizable presence there too. Banking is baked into Charlotte’s identity, along with the Hornets losing and NASCAR.
But this week, it’s been the Triangle linked with major banking developments, both nationally and internationally.
First Citizens wants to buy SVB? Really?
According to multiple reports this week, Raleigh’s First Citizens Bank is trying to acquire what’s left of Silicon Valley Bank.
Silicon Valley was known for working with dynamic early-stage tech startups. First Citizens is a traditional, family-owned institution that N.C. State finance professor Richard Warr favorably described as “boring.”
On Instagram, one person compared First Citizens buying Silicon Valley to “Billy Graham buying Studio 54.”
So, what’s First Citizens’ angle here?
The bank itself is tight-lipped about its strategy, refusing to confirm or deny whether it made a bid for Silicon Valley.
Warr suggested any Triangle-area bank with resources would benefit from capitalizing on Silicon Valley Bank’s relationships with tech companies. It has acquired 20 other banks since 2009, the company says, including purchasing CIT Group last year for $2.2 billion.
Yasser Boualam, an assistant professor of finance at UNC, said if First Citizens could strengthen its relationships with startups, it could have “significant positive spillover effects to the NC economy in the long run.”
The Federal Deposit Insurance Corporation (FDIC), which has managed Silicon Valley Bank since the lender collapsed on March 10, gave bidders until Friday night to make offers. “For guidance, we expect to announce our decision this weekend,” an FDIC spokesperson said in an email to The News & Observer on Wednesday.
While our RTP area does have a significant start up scene. The local start-up economy is centered in downtown Durham and nearly all the companies use Square One (now part of Pac West) for their banking and VC associations. It sounds like First Citizens wants to muscle in on this business.
What does Raleigh’s ‘boring’ bank want with Silicon Valley?
https://news.yahoo.com/open-source-does-raleigh-boring-122135310.html
Banking is best when it’s boring, the saying goes. By that standard, banking is not currently at its best. The collapse of Silicon Valley Bank earlier this month has the global banking system on edge, and as the dominoes fall, the North Carolina Triangle has plenty to gain or lose.
Banking news in the state usually revolves around Charlotte. The Queen City is home to Bank of America and Truist Bank. Wells Fargo, while headquartered in San Francisco, has a sizable presence there too. Banking is baked into Charlotte’s identity, along with the Hornets losing and NASCAR.
But this week, it’s been the Triangle linked with major banking developments, both nationally and internationally.
First Citizens wants to buy SVB? Really?
According to multiple reports this week, Raleigh’s First Citizens Bank is trying to acquire what’s left of Silicon Valley Bank.
Silicon Valley was known for working with dynamic early-stage tech startups. First Citizens is a traditional, family-owned institution that N.C. State finance professor Richard Warr favorably described as “boring.”
On Instagram, one person compared First Citizens buying Silicon Valley to “Billy Graham buying Studio 54.”
So, what’s First Citizens’ angle here?
The bank itself is tight-lipped about its strategy, refusing to confirm or deny whether it made a bid for Silicon Valley.
Warr suggested any Triangle-area bank with resources would benefit from capitalizing on Silicon Valley Bank’s relationships with tech companies. It has acquired 20 other banks since 2009, the company says, including purchasing CIT Group last year for $2.2 billion.
Yasser Boualam, an assistant professor of finance at UNC, said if First Citizens could strengthen its relationships with startups, it could have “significant positive spillover effects to the NC economy in the long run.”
The Federal Deposit Insurance Corporation (FDIC), which has managed Silicon Valley Bank since the lender collapsed on March 10, gave bidders until Friday night to make offers. “For guidance, we expect to announce our decision this weekend,” an FDIC spokesperson said in an email to The News & Observer on Wednesday.
MARKETS
First Citizens to buy large chunk of failed Silicon Valley Bank
PUBLISHED MON, MAR 27 20231:18 AM EDTUPDATED 12 MIN AGO
Elliot Smith@ELLIOTSMITHCNBC
SHARE
KEY POINTS
First Citizens BancShares FCNCO chart
IPO on Jan 2022.
Since then, the high keep on getting
lower and lower and
lower and lower and ...
Today, it gapped up.
The weak saves the weak ?!
First Citizens to buy large chunk of failed Silicon Valley Bank
PUBLISHED MON, MAR 27 20231:18 AM EDTUPDATED 12 MIN AGO
Elliot Smith@ELLIOTSMITHCNBC
SHARE
KEY POINTS
- The deal will see First Citizens Bank purchase around $72 billion of Silicon Valley Bank assets at a discount of $16.5 billion.
- A further $90 billion in securities and other assets will remain “in receivership for disposition by the FDIC.”
- The U.S. Federal Deposit Insurance Corporation transferred all SVB deposits and assets into a new “bridge bank” earlier this month in an effort to protect depositors of the failed lender.
First Citizens BancShares FCNCO chart
IPO on Jan 2022.
Since then, the high keep on getting
lower and lower and
lower and lower and ...
Today, it gapped up.
The weak saves the weak ?!
%%
OK\ but SVB looked really good on the charts,EPS also\but woke broke.
Looks like NC bank is not woke broke.
I've seen better uptrends; but monthly candle closes, past OCT 2022 was a bear killer.
Maybe a semi weak or semi strong bank buys non toxic parts of a woke -broke bank.
This may or may not not be big deal/but that bank puts risk officer Ms L King as a ''key executive'' SVB , never mind on that risk officer point.