Silicon Valley Bank: According to a statement released by the Federal Deposit Insurance Corporation (FDIC) on Monday, First Citizens Bank & Trust Co. will acquire all deposits and loans made by Silicon Valley Bank from the insurance provider. The First-Citizens Bank & Trust Corporation, Raleigh, North Carolina, has “engaged into a purchase and assumption agreement for all deposits and loans of Silicon Valley Bridge Bank, National Association,” according to the FDIC.
Customers of SVB should keep using their present branch
“The 17 former branches of Silicon Valley Bridge Bank, National Association, will open as First–Citizens Bank & Trust Company on Monday, March 27, 2023,” the FDIC said in a press release. Customers of SVB should keep using their present branch until First Citizens Bank notifies them that system conversions have been finished to enable full-service banking at all of its other branch locations, it added.
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SVB had roughly $167 billion in total assets and $119 billion in total deposits
The FDIC will continue to protect all deposits up to the insurance limit and all SVB depositors will automatically become First-Citizens Bank customers, according to the regulator. The FDIC said that as of March 10, SVB had roughly $167 billion in total assets and $119 billion in total deposits. “Today’s deal comprised the purchase of about $72 billion in assets from Silicon Valley Bridge Bank, National Association at a discount of $16.5 billion,” the statement continued. “About $90 billion in securities and other assets will continue to be under receivership for the FDIC to sell. Also, First Citizens BancShares, Inc., Raleigh, North Carolina, common stock with a potential value of up to $500 million was given to the FDIC as equity appreciation rights.
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