- First Citizens Bank has struck a deal with the FDIC to acquire the deposits and loans of Silicon Valley Bank.&
- First Citizens will take over $72 billion of SVB’s debt, along with $56 billion in deposits.&
- All depositors of Silicon Valley Bridge Bank will automatically become depositors of First Citizens Bank & Trust Company.
North Carolina-based First Citizens Bank & Trust Company has entered into a purchase and assumption agreement with the U.S. Federal Deposit Insurance Corp (FDIC) for the deposits and loans of Silicon Valley Bridge Bank, the entity set up by the FDIC after Silicon Valley Bank’s failure earlier this month.&
Silicon Valley Bank sold at a discount of $16 billion
According to a press release by the FDIC, 17 branches of Silicon Valley Bridge Bank are set to open as First–Citizens Bank & Trust Company today. As part of the arrangement, all depositors of Silicon Valley Bridge Bank will automatically become depositors of First Citizens Bank & Trust Company.
The transaction between the FDIC and First Citizens will see the latter assume nearly $72 billion of Silicon Valley Bank’s debt, along with $56 billion of its deposits, representing a discount of a whopping $16 billion. Roughly $90 billion in securities and other assets will remain in the FDIC’s receivership. The federal agency revealed that it had also acquired equity appreciation rights in First Citizens BancShares common stock, valued at up to $500 million.&
“The FDIC estimates the cost of the failure of Silicon Valley Bank to its Deposit Insurance Fund (DIF) to be approximately $20 billion. The exact cost will be determined when the FDIC terminates the receivership.”
FDIC press release
Before its collapse, Silicon Valley Bank had more than $175 billion in deposits and $209 billion in assets. With $89 billion in deposits and $109 billion in assets, First Citizens Bank has acquired a bank nearly twice its size.&
SVB’s sale at the hands of the FDIC comes a week after the federal agency entered into a similar agreement with Michigan-based Flagstar Bank to offload Signature Bank’s assets and loan book. Signature Bank was seized by the FDIC earlier this month.
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments