First Citizens’ purchase of SVB confirms importance of avoiding irrational fear and discriminating between institutions, regardless of size
Bankinter : US banks celebrate the purchase of Silicon Valley Bank/SVB by First Citizens (FC) with a +2.5% rise in yesterday’s session. Positive highlights: First Citizens (+53.7%), First Republic (+11.8%), Bank of America (+4.9%) and Citigroup (+3.8%). Analysis team’s view: This is an interesting deal for First Citizens and good news for US banking and the global financial sector. Our reasoning is as follows: (1) FC acquires SVB’s assets (loans…