Is First Citizens BancShares ($FCNCA) Quietly Engineering a Banking Empire No One Saw Coming?
A lot of these are assets of failed banks from the FDIC for pennies on a dollar.
The Silicon Valley Bank Acquisition (SVB) was such a Good Deal.
SVB, once a prominent lender to tech startups and venture capital firms, collapsed in March 2023 due to a classic bank run. The bank had parked a large portion of its deposits in long-term government bonds and mortgage-backed securities during a low-interest-rate environment. As interest rates rose rapidly in 2022–2023, the market value of those bonds plummeted. When SVB announced it needed to raise capital to shore up its balance sheet, it triggered panic among its tech-heavy depositor base, who rapidly withdrew funds. Within 48 hours, the bank was taken over by regulators, marking the second-largest bank failure in U.S. history.
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