Bank Robs People!

Bank Robs People!

In the old days, robbers would rob banks. Now banks rob people.

First Citizens Bank (FCB) just took your taxpayer money, against the law in my opinion. Here's the deal.

From the Wall Street Journal: "North Carolina-based First Citizens will acquire all of SVB’s deposits, loans and branches but leave $90 billion in securities and other assets with the FDIC. First Citizens will buy SVB’s $72 billion in loans at a sizable $16.5 billion discount and share future losses or gains with the FDIC. How sweet it is for First Citizens, whose shares rose 45.5% Monday."

The FDIC, under law, is supposed to work to minimize losses to the taxpayer. Yet no other banks or hedge funds were in the mix to buy the assets.

Maybe the FDIC was lazy because they just sold it all to one bidder rather than try to get the highest price for the parts separately. We will never know if the parts were worth more separately but I suspect there would be because speciality funds and banks could cherry pick what they know about.