First Citizens Bank Acquires Seized Silicon Valley Bank (SVB) - TheNewsCrypto

• On March 10th, the overall assets of Silicon Valley Bridge Bank were about $167 billion.
• The FDIC will still be in possession of $90 billion in securities and other assets.

For $500 million, First Citizens Bank has purchased Silicon Valley Bank (SVB). Compared to its $40 billion valuation a year ago, the crypto-friendly Silicon Valley Bank is currently being bought for a whopping 99% discount. As of now, First Citizens BancShares has accepted deposits totaling $119 billion.

On Monday, the holding company of First Citizens Bank, First Citizens BancShares, began preliminary conversations with the Federal Deposit Insurance Corporation (FDIC) about acquiring Silicon Valley Bank. Concerns about the credit crunch and the wider systemic banking crisis were eased by the announcement of First Citizens’ acquisition of SVB.

Discounted Deal

According to a press statement from the FDIC, on March 27, 2023, the 17 locations of Silicon Valley Bridge Bank, National Association will reopen as First-Citizens Bank & Trust Company. The FDIC also announced that it will sell all of Silicon Valley Bank’s deposits and loans to First Citizens Bank & Trust Co.

On March 10th, the overall assets of Silicon Valley Bridge Bank were about $167 billion, while the total deposits were around $119 billion. Around $72 billion in Silicon Valley Bridge Bank assets will be acquired in the deal, at a discount of $16.5 billion. Yet the FDIC will still be in possession of $90 billion in securities and other assets as a receiver.

The FDIC estimates that the collapse of Silicon Valley Bank will have a cost to the Deposit Insurance Fund (DIF) of almost $20 billion. When the FDIC receivership is through, the true cost may be determined. The California Department of Financial Protection and Innovation seized Silicon Valley Bank on March 10.