The failed banking entity’s loans and deposits will now be handled by First Citizens
the American bank First Citizens entered into an agreement to purchase everything deposits and loans From Silicon Valley Bank (SVB), which failed in early March. The transaction includes the purchase of approximately $72 billion of assets and $119 billion of deposits.
As announced by Federal Deposit Insurance Corporation (FDIC)which received stock appreciation rights in First Citizens BancShares with a potential value of up to $500 million, all 17 branches of Silicon Valley Bank will open as First Citizens this Monday, the 27th.
“Silicon Valley Bank customers must continue to use their current branch until notification is received from First-Citizens Bank & Trust Company that systems conversions have been completed to enable full banking services at all other branches,” the FDIC said.
The bankruptcy of SVB has created panic in the North American banking sector, with repercussions on European markets. The FDIC estimates the cost of bankruptcy to your DIF (Deposit Insurance Fund) be about 20 billion dollars. However, the exact cost will be determined when the regulator closes the receivership.
As of early March, SVB had $167 billion in total assets and about $119 billion in total deposits. Under today’s settlement, approximately $90 billion in bonds and other assets will remain in receivership to be disposed of by the FDIC. /AFP
Source: Terra
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