Regulator Federal Deposit Insurance Corporation (FDIC) exercised its equity rights in First Citizens BancShares Inc and New York Community Bancorp Inc as part of the deals to rescue failed lenders Silicon Valley Bank and Signature Bank.
The equity right to purchase $500 million in First Citizens was exercised on March 28, according to a filing on Friday. A spokesperson for the regulator confirmed FDIC also exercised its option to acquire shares of New York Community Bancorp.
FDIC took over Silicon Valley Bank on March 10 after depositors rushed to pull out their money in a bank run that also brought down Signature Bank and wiped out more than half the market value of several other U.S. regional lenders.
Source : FDIC Completes SVB Deal by Exercising $500 Million in First Citizens Stock