This should turn your stomach!-----The FDIC’s Sweetheart Bank Deal for SVB

The FDIC’s Sweetheart Bank Deal for SVB  -  The Editorial Board

• First Citizens scores a great deal, while the deposit insurance fund takes a $20 billion hit.

"It’s good to be a banker at the remainder counter, especially when the feds are helping with the purchase. 

First Citizens BancShares on Sunday night was the lucky winner of the bidding to buy the assets of Silicon Valley Bank, and what a deal it is. 

Rather than minimize the cost to the deposit insurance fund as required by law, the Federal Deposit Insurance Corp. seems to have chosen the best political match...

...The losers in this sweetheart deal will be other banks (and their customers) that will have to pick up the estimated $20 billion cost to replenish the deposit insurance fund. 

That’s about 15% of the entire fund. 

• By comparison, the 214 bank failures between 2011 and 2022 cost the fund $12.4 billion...