First Citizens Bank to acquire failed Silicon Valley Bank assets at a discount
First-Citizens Bank plans to acquire the assets of the failed Silicon Valley Bank (SVB). Asset valued at $72 billion, discounted at $16.5 billion.
In the press on March 26 statementthe Federal Deposit Insurance Corporation (FDIC) said the deal covers all deposits and loans of failed crypto-friendly banks.
The FDIC added that all depositors in Silicon Valley Bridge Bank, a bridge bank created by regulators after the SVB collapsed, will automatically become First-Citizens Bank depositors. The financial regulator continued that all deposits accepted by First-Citizens Bank will continue to be insured up to the insurance limit.
As of March 10, Bridge Bank had total assets of approximately $167 billion and total deposits of approximately $119 billion.
“The FDIC and First-Citizens Bank & Trust Company have entered into a loss-sharing transaction for commercial loans purchased from the former Silicon Valley Bridge Bank, the National Association. We will share the losses and potential recoveries on loans covered by our loss sharing agreement.”
The FDIC said about $90 billion of SVB’s securities and other assets will remain in receiverships for disposal. The regulator added that he received a stock valuation gain worth $500 million on the common stock of First Citizens BancShares, First-Citizens’ parent company.
Early estimates show that the SVB failure cost the deposit insurance fund about $20 billion, according to the FDIC. The regulator added that the total cost will be determined when the trustee is terminated.
The first Citizen Bank to acquire failed Silicon Valley Bank assets at discounted prices first appeared on CryptoSlate.
