Rescuing Financial Institutions: case study analysis of bank M&As during the 2023 U.S. Banking Crisis

In 2023, U.S. banking system experienced a period of turmoil, that led to the failure of several financial instituions and general turbolence in the whole system. When a bank fails, in order to avoid disastrous consequences to the whole economy, the Government or another bank (or both toghether) can intervene and bailout the bank. This is what happened to some banks in the U.S. during the 2023 crisis. Aim of the thesis is to analyze some of the most relevant M&A deals occured; specifically there will be a focus on the Silicon Valley Bank, Signature Bank, First Republic Bank and PacWest Bancorp cases, that all experienced a bank run in deposits and contagion effect from one to the other during the first half of 2023. The thesis will develop each case focusing on the reason of the failure and on the subsequent acquisition by another bank. It will be explored the terms and structure of the deal, the strategic objective and the post-merger performance. The thesis should be helpful in understanding the connection among these cases and the importance of the bailout measure in such dramatic situations.