First Citizens Bank buys failed Silicon Valley bank

First-Citizens Bank & Trust Company has reached an agreement for acquisition of all deposits and loans of Silicon Valley Bridge Bankentity created by the Federal Deposit Insurance Corporation (FDIC) of the United States, following the intervention of Silicon Valley Bank (SVB) on March 10.

The FDIC estimates the costs of the Silicon Valley bank’s bankruptcy to its Deposit Insurance Fund (DIF) to be about $20,000 million (€18,582 million), although the final figure will be determined after the court administration ends.

He the contract with First-Citizens Bank includes the purchase of assets in the amount of approximately 72,000 million dollars (66,897 million euros) from Silicon Valley Bridge Bank, with a discount of 16,500 million dollars (15,330 million euros), while about 90,000 million dollars (83,621 million euros) in securities and other assets will remain under the bankruptcy administration of the FDIC.

In addition, the FDIC received rights to First Citizens BancShares common stock, with a potential value of up to $500 million (€465 million). So, all 17 Silicon Valley Bridge Bank branches will open this Monday as First-Citizens Bank offices & Trust Company.