First Citizens Bank to acquire failed Silicon Valley Bank assets at a discount

First-Citizens Bank is acceptable to get the assets of the failed Silicon Valley Bank (SVB) — valued astatine $72 cardinal for a discount of $16.5 billion.

In a March 26 property statement, the Federal Deposit Insurance Corporation (FDIC) said the woody covers each the deposits and the loans of the failed crypto-friendly bank.

FDIC added that each depositors of Silicon Valley Bridge Bank — the span slope acceptable up by the regulator aft SVB’s illness — would automatically go that of First–Citizens Bank. The fiscal regulator continued that each deposits assumed by First-Citizens Bank would proceed to beryllium insured to the security limit.

As of March 10, the span slope had astir $167 cardinal successful full assets and astir $119 cardinal successful full deposits.

“The FDIC and First–Citizens Bank & Trust Company entered into a loss–share transaction connected the commercialized loans it purchased of the erstwhile Silicon Valley Bridge Bank, National Association.  The FDIC arsenic receiver and First–Citizens Bank & Trust Company volition stock successful the losses and imaginable recoveries connected the loans covered by the loss–share agreement.”

FDIC said astir $90 cardinal of SVB’s securities and different assets would stay successful receivership for disposition. The regulator added that it received equity appreciation rights worthy arsenic overmuch arsenic $500 cardinal successful First Citizens BancShares communal banal — the genitor institution of First-Citizens.

According to the FDIC, aboriginal estimates amusement that SVB’s failure outgo its Deposit Insurance Fund astir $20 billion. The regulator added that the full outgo would beryllium determined erstwhile it terminates the receivership.

The station First Citizens Bank to get failed Silicon Valley Bank assets astatine a discount appeared archetypal connected CryptoSlate.