First Citizens Comes to SVB's Rescue

WSJ Opinion: Potomac Watch

The Wall Street Journal

Society & Culture, News

4.2 • 2.8K Ratings

🗓️ 27 March 2023

⏱️ 20 minutes

🔗️ Recording | iTunes | RSS

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Summary

The FDIC found a buyer for Silicon Valley Bank's assets after its spectacular collapse in First Citizens BancShares, and Fed chairman Jerome Powell has vowed to look into the supervisors and regulatory policies to prevent this from happening again. But where does the blame truly belong, and do all signs point to a recession later this year? Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Three, two, one.
0:03.0	What will the world look like 10 or 20 years from now?
0:07.2	The Wall Street Journal's future of everything podcast is here to give you a peek, and we
0:11.3	can't wait to show you what's coming.
0:13.7	Subscribe now.
0:15.5	From the opinion pages of the Wall Street Journal, this is Potomac Watch.
0:25.5	Our citizens' bank shares buys the assets of failed Silicon Valley bank in a transaction
0:30.8	negotiated by the Federal Deposit Insurance Corporation and markets' breath.
0:35.8	A modest sigh of relief will take stock of the state of the banking panic in the third
0:40.5	week since it began.
0:42.1	Plus Minneapolis Federal Reserve President Neil Cushkari says the financial tumult makes
0:47.0	the odds of a recession that much more likely.
0:50.3	Welcome, I'm Paul Gigo with the Wall Street Journal opinion pages, and I'm here with my
0:54.7	colleagues Kim Strassel and Joe Sternberg.
0:57.8	Welcome to you both.
0:59.1	Boy, how I would like to have been a first citizens' bank shareholder this morning.
1:03.7	The FDIC finally found a buyer for the assets of Silicon Valley bank, cost the FDIC insurance
1:10.4	fund about $20 billion to cover the losses in a loss-sharing agreement according to
1:15.6	the FDIC.
1:16.6	That's about 10% of the money in the fund.
1:19.4	So that's a substantial chunk of that bank safety.
1:22.4	That's second.
	...

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