The United States Federal Deposit Insurance Corporation (FDIC) has entered into an agreement for all deposits and loans of Silicon Valley Bridge Bank, National Association, by First-Citizens Bank & Trust Company, according to a news release from the FDIC on Sunday.
As of March 10, 2023, Silicon Valley Bridge Bank, National Association, had approximately $167 billion in total assets and about $119 billion in total deposits.
The transaction included the purchase of about 72 billion U.S. dollars of Silicon Valley Bank (SVB)’s assets at a discount of 16.5 billion dollars, said the FDIC. And according to its website, First Citizens owns around 109.3 billion dollars in assets.
In addition, the FDIC said it received equity appreciation rights in First Citizens BancShares, Inc., Raleigh, North Carolina, common stock with a potential value of up to $500 million.
“The FDIC estimates the cost of the failure of Silicon Valley Bank to its Deposit Insurance Fund (DIF) to be approximately $20 billion, ” the FDIC said.
The FDIC said that the exact cost will be determined when the FDIC terminates the receivership.
SVB Financial Group, the parent of Silicon Valley Bank, filed for bankruptcy protection on March 17.
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