First Citizens’ Stock Surge Means FDIC Is Already Set to Profit Off SVB Deal
- FDIC got $500 million in equity-appreciation rights in deal
- Shares of the bank soar as much as 49% on SVB takeover
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The Federal Deposit Insurance Corp. is on its way to profiting off the deal it helped broker for First Citizens BancShares Inc.’s takeover of SVB Financial Group.
Equity-appreciation rights awarded to the regulator went into the money Monday, as shares began trading with a surge of as much as 49%, to $870.15. The rights, which have a potential value of $500 million, mean the FDIC stands to gain if the stock rises above $582.55, according to a regulatory filing.