The FDICgov has finalized a deal worth $55.5 billion with firstcitizens for Silicon Valley Bank's deposits and loans. All SVB branches will re-brand as of Monday. thesamreynolds reports
In a statement, the FDIC said that all depositors of Silicon Valley Bridge Bank, the bridge bank set up by the FDIC after SVB’s failure, will automatically become depositors of First Citizens Bank & Trust Company. All deposits assumed by First Citizens Bank & Trust Company will continue to be insured by the FDIC up to the insurance limit.
As of March 10, Silicon Valley Bridge Bank reported roughly $167 billion in assets and nearly $119 billion in deposits. The FDIC says the transaction involved purchasing around $72 billion of the bank's assets at a $16.5 billion discount. About $90 billion in securities and other assets will stay in the receivership, awaiting disposition by the FDIC.
The FDIC also says it has acquired equity appreciation rights in First Citizens BancShares common stock, the parent of First Citizens Bank, which is potentially worth up to $500 million pending market conditions. Initial estimates from the FDIC say that Silicon Valley Bank’s failure cost its Deposit Insurance Fund around $20 billion. The precise cost will be established once the FDIC concludes the receivership.
It's unclear how many former clients of Silicon Valley Bank will remain with First Citizens as of Monday. Many established banks like Citi and First Republic, as well as fintech neobanks, poached Silicon Valley Bank's clients during the chaotic days after the bank run.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Valley National, First Citizens bidding for Silicon Valley: reportValley National Bank and First Citizens BancShares have reportedly submitted bids for the failed Silicon Valley Bank following it's collapse earlier this month.
Leer más »
First Citizens said to be near deal for Silicon Valley Bank: reportFirst Citizens BancShares Inc (FCNCA.O) was in advanced talks to acquire Silicon Valley Bank (SIVB.O) and close to making a deal.
Leer más »
First Citizens near deal to buy Silicon Valley Bank: reportFirst Citizens BancShares Inc. is close to a deal to acquire failed Silicon Valley Bank from the Federal Deposit Insurance Corp., according to a report late...
Leer más »
First Citizens Nearing Deal for Silicon Valley Bank: BloombergRaleigh, N.C.-based First Citizens is the 30th largest bank in the U.S., with $109 billion in assets, and recently completed an acquisition of New York-based commercial lender CIT.
Leer más »
First Citizens reportedly nearing deal to acquire Silicon Valley BankFirst Citizens Bank is reportedly nearing a deal to acquire the failed Silicon Valley Bank through an auction held by the Federal Deposit Insurance Corporation.
Leer más »