All articles tagged with #first citizens
JP Morgan is cutting around 1,000 jobs, or 15% of the workforce, at First Republic Bank after buying the failed lender earlier this month. The affected employees will receive pay and benefits for 60 days, along with a package which includes a lump sum payment and other benefits. First Citizens, which bought the US unit of another troubled lender, is also planning to cut around 500 roles held by former Silicon Valley Bank workers.
First Citizens, the new owner of Silicon Valley Bank (SVB), has filed a lawsuit against HSBC for allegedly poaching SVB bankers in violation of their contracts. The lawsuit claims that HSBC offered "exorbitant compensation packages" to lure away SVB bankers, causing significant harm to SVB's business. First Citizens acquired SVB in January 2021.
First Citizens Bancshares has made a significant gain on its acquisition of Silicon Valley Bank's Florida-based subsidiary, First Citizens Bank & Trust Company. The deal, which was completed in January, has boosted First Citizens' assets by $8.2bn and expanded its presence in Florida.
Several stocks are moving in the stock market, including First Citizens, First Republic, Coinbase, Blackbaud, and Carnival.
Coinbase shares fell 7.8% after the CFTC filed a complaint against Binance, while First Citizens BancShares soared 53.74% after agreeing to buy Silicon Valley Bank's deposits and loans. Regional bank stocks, including First Republic and PacWest, rose on reports of government support and slowed deposit outflows. Roku shares jumped over 4.7% after an upgrade by Susquehanna, while Carnival shed 4.77% despite beating earnings expectations. Corning advanced 1.52% after getting an upgrade at Deutsche Bank.
Shares of Deutsche Bank rebounded on Monday, easing fears for the shaky European banking system following a slight drop in the cost of insuring the lender’s debt against default. Other European banking stocks also saw gains on Monday. Dow futures were up more than 230 points before the opening bell on Wall Street on Monday after First Citizens stepped in to acquire a large chunk of failed lender Silicon Valley Bank.
First Citizens has agreed to acquire most of Silicon Valley Bank's retail operations, including 17 branches, deposits, and loans, at a $16.5 billion discount. The deal will give First Citizens about $56 billion in deposits and $72 billion in assets, making it one of America's 25 biggest banks. However, the F.D.I.C. expects its deposit insurance fund to take a roughly $20 billion hit, and billions of dollars in deposits remain uninsured. The banking sector is still under pressure, and issues like social media and mobile banking haven't been addressed.
Pinterest gained 4.3% after UBS upgraded the social media stock to buy, while First Citizens BancShares shares popped 40% on news that it will buy around $72 billion of Silicon Valley Bank assets. Regional bank stocks were also moving higher on Monday. Caterpillar shares dropped 1.2% after Baird downgraded the machinery company to underperform. KeyCorp gained 6.8% after Citi upgraded the stock to buy from neutral, and Dish Network's shares fell 2.5% after a class-action lawsuit was announced against the company.
First Citizens BancShares has acquired Silicon Valley Bank, which was seized by the Federal Deposit Insurance Corporation (FDIC) earlier this month after a run on deposits left it insolvent. The deal includes the purchase of about $72 billion of assets at a discount of $16.5 billion. The FDIC will receive equity appreciation rights in the stock of First Citizens worth up to $500 million. Silicon Valley Bank's former parent company, SVB Financial, filed for bankruptcy on March 17 and plans to sell various units.
First Citizens BancShares is reportedly close to acquiring Silicon Valley Bank from the FDIC, which has been trying to auction off the failed bank for about two weeks. The deal could be announced as soon as Sunday night, though a final decision has not yet been made. First Citizens has bought 20 failed banks since 2009 and its shares have sunk 23% year to date.
First Citizens BancShares has submitted an offer to buy all of failed Silicon Valley Bank, according to a person familiar with the matter. The FDIC has been trying to find a buyer for SVB since it took it into receivership on March 10. First Citizens is a 125-year-old bank that operates in over 20 different states. The FDIC said it had substantial interest from multiple parties seeking to buy SVB, adding that it is still accepting bids from qualified financial institutions for the whole company.
First Citizens BancShares is reportedly evaluating making an offer for Silicon Valley Bank (SVB) as a potential buyer in the auction process for the failed bank. The Federal Deposit Insurance Corp. will decide on Sunday whether to pursue a full sale or breakup of SVB. First Citizens made a previous offer for SVB which was rejected for being too low. At least one other suitor is making a serious consideration for SVB.