First Citizens Bank has signed an agreement to acquire and transfer all deposits and loans to Silicon Valley Bank.
American First Citizens Bank will buy most of the bankrupt Silicon Valley Bank in early March, the Financial Times reports.
The bank will take over all of SVB’s $119 billion in deposits, as well as control over the financial institution’s loans and manage its 17 branches.
First Citizens Bank will acquire about $72 billion of SVB’s assets at a $16.5 billion discount, leaving about $90 billion of securities and other assets with the Federal Deposit Guarantee Corporation.
In announcing the deal, the regulator said SVB’s failure could cost its deposit insurance fund, funded by member banks, by about $20 billion.
The addition of SVB’s business will significantly increase the size of First Citizens, which had just over $100 billion in assets and nearly $90 billion in deposits at the end of last year, making it the 36th largest bank in the US according to in assets.
The market value of First Citizens Bank is approximately $8 billion.
Earlier, New York Community Bank took over the bankrupt Signature Bank.
It will be remembered that in early March, two banks went bankrupt in the United States – Silicon Valley Bank and Signature Bank. And in Europe, due to financial problems, the second largest Swiss bank Credit Suisse merged with competitor UBS.
news Correspondent.net on Telegram. Subscribe to our channel Athletistic
Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.