Banking Turmoil: First Citizen Acquires Assets Of Collapsed Silicon Valley Bank!

Silicon Valley Bank assets taken over by First Citizens
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First-Citizens Bank, one of the largest regional banks in the U.S., is buying big pieces of collapsed Silicon Valley Bank (SVB) more than two weeks after the lender’s collapse sent tremors through the banking system, the Federal Deposit Insurance Corp (FDIC) announced. The purchase includes $119 billion in deposits and about $72 billion of SVB’s loans at a discount of $16.5 billion. Some $90 billion of SVB’s securities will remain in receivership. 

The U.S. regulators took control of California-based SVB on March 10. The collapse triggered the Sudden Death virus that led to the collapse of New York-based Signature Bank the following weekend.

Depositors of Silicon Valley Bank will automatically become depositors of First–Citizens Bank. All deposits assumed by First–Citizens Bank will continue to be insured by the FDIC up to the insurance limit. The 17 former branches of Silicon Valley Bank will open as First–Citizens on Monday, March 27, 2023.

The FDIC agreed to share any of First Citizens’ losses or potential gains on SVB’s commercial loans. The FDIC estimated the failure of SVB would cost a federal insurance fund it oversees about $20 billion, or roughly 10% of the bank’s assets before its failure.

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