All articles tagged with #bank acquisition
HSBC plans to privatize Hong Kong's Hang Seng Bank in a $13.6 billion deal, offering a 30.3% premium, amid concerns over Hang Seng's rising bad loans and exposure to the property market. The move aims to strengthen HSBC's market position in Hong Kong, with the bank pausing share buybacks to fund the acquisition, which will keep Hang Seng as a separate brand.
JPMorgan Chase has acquired the majority of First Republic Bank's assets, including $173bn of loans, $30bn of securities, and $92bn of deposits, in a deal negotiated by regulators. JPMorgan benefited from a loophole in a 1994 law that allowed waivers from the 10% maximum for buyers that stepped up to rescue failing lenders that the FDIC stood poised to shut down. The deal has already given JPMorgan's stock a boost and stabilized the shaky outlook for regional banks.
First Citizens Bank will acquire Silicon Valley Bank, which collapsed earlier this month, in a deal that involves the sale of all deposits and loans of SVB to First Citizens. The acquisition gives the FDIC shares in First Citizens worth $500 million, and both parties will share in losses and potential recovery on loans included in a loss-share agreement. Silicon Valley Bank failed after depositors rushed to withdraw money amid fears about the bank's health, making it the second-largest bank collapse in U.S. history after the 2008 failure of Washington Mutual.