First Citizens to buy back deposits and loans from bankrupt Silicon Valley Bank

The American banking holding First Citizens from the state of North Carolina will acquire all deposits and loans of the bankrupt bank Silicon Valley Bank (SVB). The US Deposit Insurance Corporation reportedFDIC).

By March 10, SVB’s total assets were about $167 billion and deposits were $119 billion. First Citizens will receive assets worth about $72 billion at a $16.5 billion discount. to increase the value of First Citizens securities and common stock with a potential value of up to $500 billion.

SVB filed for bankruptcy on March 10, the bank was the 16th largest bank in the US. By information Bloomberg, First Citizens was interested in the possibility of buying SVB assets. By data publications, the regional banking holding Valley National Bancorp also claimed the assets of SVB. After SVB, New York-based Signature Bank filed for bankruptcy, becoming the third-biggest bank failure in US history. In the week following the SVB and Signature Bank collapses, other US banks borrowed a record $165 billion from the US Federal Reserve due to banking market concerns.

Olesya Pavlenko