Stocks of regional banks surged Monday after regulators announced a sale of Silicon Valley Bank’s deposits and loans, an agreement that demonstrated how much government assistance will be required to stoke new deal making during this banking crisis.
The buyer, First Citizens Bancshares (FCNCA), ended the day up 54%. The stock of another troubled regional lender, First Republic (FRC), was 12% higher as that San Francisco lender considers a number of options to stabilize its situation. The stocks of PacWest Bancorp (PACW) and Western Alliance Bancorp (WAL), two other California lenders that came under investor pressure following Silicon Valley Bank’s failure, also rose.
Source : How First Citizens secured a $16.5 billion discount for Silicon Valley Bank takeover