First-Citizens Bank & Trust Company ("First Citizens Bank"), a subsidiary of Raleigh-headquartered First Citizens BancShares, Inc. ("First Citizens") (Nasdaq: FCNCA), announced today that it has entered into an agreement with the Federal Deposit Insurance Corporation (FDIC) to purchase out of FDIC receivership substantially all loans and certain other assets, and assume all customer deposits and certain other liabilities of Silicon Valley Bridge Bank, N.A. 

BofA Securities, Inc. is serving as exclusive financial advisor to First Citizens and Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan, LLP acted as legal advisor.

Certainly, many people have heard about the “Stop Wall Street Looting Act of 2021”, the dramatically titled shot at the private equity business publicized by Massachusetts Senator Elizabeth Warren, introduced in the House and the Senate on October 20, 2021.  Given so many other major (and controversial) legislative initiatives, the bill does not seem to be gaining much traction—for now.  At the same time, while the secured lending industry makes a lot of loans to businesses owned by private equity firms, the headlines around the proposed legislation do not suggest any direct impact on secured lenders. The bill certainly addresses matters relating to the private equity industry, with sections titled “Closing the Carried Interest Loophole”, “Restrictions on Securitizing Risky Corporate Debt” and other provocative terms, like “Anti-Looting” and includes sections providing for limitations on post-acquisition dividends and distributions as part of a reworking of basic principles of corporate law.