First Citizens Bank Acquires Silicon Valley Bank
Silicon Valley Bank (SVB), the bank that was declared insolvent three weeks ago, is being bought by First Citizens Bank.
Silicon Valley Bank (SVB), the bank that was declared insolvent three weeks ago, is being bought by First-Citizens Bank. This is stated in a press release from the Federal Deposit Insurance Corporation (FDIC).
According to the press release, First-Citizens will take on about $72 billion of SVB's assets at a discount of $16.5 billion. First Citizens will also assume the bank's existing customers. Deposits will remain insured, the FDIC said.
According to the press release, SVB had assets valued at $167 billion and deposits worth $119 billion as of March 10, under FDIC supervision.
Silicon Valley Bank collapsed on March 10, triggering a full-blown bank run. To calm the panic, deposits were safeguarded and taken over by the US Deposit Insurance Corporation. With SVB's resolution and the looming collapse of other regional banks, the US faces the biggest banking crisis since 2008.
