The Bank Slate


FDIC exercises rights tied to First Citizens, NY Community

The Federal Deposit Insurance Corp. has exercised its equity appreciation rights tied to common stock in First Citizens BancShares and New York Community Bancorp.

First Citizens disclosed in a regulatory filing that the FDIC on Tuesday exercised its right to a payment of $500 million. An FDIC representative told Reuters that it also exercised its right tied to New York Community’s stock.

First Citizens awarded its rights to the FDIC as part of its deal for deposits and assets tied to Silicon Valley Bridge Bank. New York Community awarded the rights as payment for the deposits and certain assets that were held by Signature Bridge Bank.

Shares in both First Citizens and New York Community skyrocketed after their deals were announced.

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