SVB loans and deposits sold to First Citizens Bank
SVB, a key lender to the tech industry since the 1980s, became the biggest US bank to fail since 2008. Regulators seized the bank after a sudden run on deposits
FollowAmid the ongoing banking crisis in the United States, all Silicon Valley Bank loans and deposits have been sold to First Citizens Bank, the US banking agency Federal Deposit Insurance Corp (FDIC) informed. The SVB, a key lender to the tech industry since the 1980s, became the biggest US bank to fail since 2008. Regulators seized the bank after a sudden run on deposits
The US banking agency said on Monday that First Citizens Bank would buy 'all the deposits and loans' of Silicon Valley Bank after it went bankrupt at the beginning of March.
In a statement, the FDIC said that the purchase by unit First–Citizens Bank & Trust Company includes the purchase of about $72 billion of Silicon Valley Bank's assets at a discount of $16.5 billion, the FDIC said.
"The FDIC estimates the cost of the failure of Silicon Valley Bank to its Deposit Insurance Fund (DIF) to be approximately $20 billion. The exact cost will be determined when the FDIC terminates the receivership," the statement further said.
