[toast0]

> Are they confident First-Citizens can withstand 25% of deposits getting pulled in a few days because they’re flush with cash and short term treasuries?

I'd guess the tansferred assets are eligible for the new Bank Term Funding Program, so First-Citizens should be able to borrow cash to pay withdrawals in a way that SVB couldn't. I'd expect everyone involved to be aware of the danger of a bank run from this group of customers, and plan accordingly. Of course, expecting others to act sensibly is not always justified.

[nr378]

Eligible collateral under the Bank Term Funding program must be "direct obligations of, and obligations fully guaranteed as to principal and interest by, the United States", this covers assets such as U.S. Treasuries, U.S. agency securities, and U.S. agency mortgage-backed securities, but importantly doesn't cover any of SVB's $72bn loan book. (It does cover much of their $90bn of remaining securities that weren't transferred.)

First Citizens does however have existing assets that would count as eligible collateral.

[onlyrealcuzzo]

> Bank Term Funding Program

I like that they didn't call it TARP 2.0

[zeroonetwothree]

The assets aren’t “troubled” in the same way. Indeed they actually have very low default risk because they have such low rates.

[comte7092]

It’s the deposits, not the assets that are the problem in this case.

[hindsightbias]

GALT 2.0 would be more appropriate

[taeric]

Yeah, the big question is honestly if SVB would still be here if they had been able to borrow in this new way. On paper, the reason people panicked and did the run was because they felt their money was locked to the maturity date and that SVB would not be able to take out loans against their very real assets.

[birdyrooster]

Peter Thiel deserves to be unbanked.