FDIC approves purchase of SVB by a family firm
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FRIDAY WRAP | 03.24.23
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BOARD SABERMETRICS STORY OF THE WEEK…
SVB was bought by a firm with worse governance and less risk oversight!
The North Carolina-based First Citizens bought SVB. The deal includes the purchase of about $72 billion of SVB assets at a discount of $16.5 billion.
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"We are committed to building on and preserving the strong relationships that legacy SVB's Global Fund Banking business has with private equity and venture capital firms."
-Frank B. Holding, Jr., CEO of First Citizens Bank
Board Sabermetrics identifies First Citizens as a family firm because three directors control 75% of board influence.
While First Citizens does have a risk committee, there are no risk experts on it. Not to mention, the collective influence of the risk committee is 5%.
This analysis leads us to conclude that SVB was bought by a firm with worse governance and less risk oversight than the SVB board. Well done, FDIC!
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