The bankrupt SVB was sold to another large American bank
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America’s First Citizens Bank is buying most of Silicon Valley Bank, which went bankrupt in early March.
It is reported Financial Times with reference to the statements of American regulators.
First Citizens Bank will take over all of SVB’s $119 billion in deposits, as well as gain control over SVB’s loans and manage its 17 branches. The bank will acquire about $72 billion of SVB’s assets at a discount, leaving about $90 billion of securities and other assets with the Federal Deposit Insurance Corporation.
In announcing the deal, the regulator said SVB’s bankruptcy could cost its Deposit Insurance Fund, which is held at the expense of member banks, about $20 billion.
First Citizens, which bills itself as the nation’s largest family-owned bank, has been one of the biggest buyers of troubled banks in recent years. Since 2008, there have been almost 20 purchase agreements in the banking sector with the support of the Corporation.
Adding SVB’s business will significantly increase the size of First Citizens, which at the end of last year had just over $100 billion in assets and nearly $90 billion in deposits, making it the 36th largest U.S. bank by assets.
The market value of First Citizens Bank is about 8 billion dollars.
This deal follows a similar takeover of Signature Bank by New York Community Bank.
Read also: The world is panicking over the collapse of Silicon Valley Bank and fears a new financial crisis. Is everything so serious?
We remind you:
On Monday, the US guaranteed the preservation of SVB bank deposits, but these actions failed to reassure investors about the situation of other banks around the world: shares of leading banks fell down.
Silicon Valley Bank pond the largest U.S. bankruptcy in a decade, after its longtime customer base of tech startups became concerned and began withdrawing deposits.
American regulator close Signature Bank, a major lender in the crypto industry, in an attempt to contain the spread of the banking crisis.
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