First Citizens Bank to purchase assets of Silicon Valley Bank
(VOVWORLD) - First-Citizens Bank & Trust Company (FCB) have reached an agreement to buy all deposits and loans of Silicon Valley Bank (SVB), the Federal Deposit Insurance Corporation (FDIC) said on Monday.
 First Citizens Bank gets the 72 billion USD in SVB loans at a discount of 16.5 billion USD. (Photo: Straits Times) |
Currently, the FDIC is temporarily taking over SVB after this leading technology bank declared bankruptcy. Seventeen former branches of SVB began operating as “Silicon Valley Bank, a division of First Citizens Bank,” the same day and deposits from all SVB customers are automatically converted to FCB's accounts.
As of March 10, SVB had approximately 167 billion USD in total assets and about 119 billion USD in total deposits. The FDIC said First Citizens Bank was getting the 72 billion USD in SVB loans at a discount of 16.5 billion USD. About 90 billion USD in securities and other assets that were owned by SVB will remain in receivership for disposition by the FDIC.
The agreement also gives FDIC the right to increase equity in First-Citizens Bank.