Bank holding company First Citizens Bank & Trust Company will buy all the assets of the bankrupt Silicon Valley Bank (SVB). This was reported on the website of the US Federal Deposit Insurance Corporation (FDIC).
The regulator recalled the creation of an “interim” bank Silicon Valley Bridge Bank after the bankruptcy of SVB. As reported, on March 27, 17 former branches of this bank will open as branches of First Citizens Bank & Trust Company.
SVB clients will automatically become depositors of the bank that bought the assets. All deposits accepted by First Citizens Bank & Trust Company will be FDIC insured.
Related: What Happened to Silicon Valley Bank?
The deal is valued at $72 billion with a discount of $16.5 billion. Approximately $90 billion in securities and other assets will be held by the FDIC.
The department clarified that as of March 10, Silicon Valley Bridge Bank’s total amount of assets was approximately $167 billion and deposits $119 billion.
On March 10, the US bank Silicon Valley Bank collapsed, which ranked 16th among the largest banks in the US and specialized in working with start-ups. The FDIC estimates the damage from what happened at around $20 billion.
Earlier it became known that the “daughter” of Silicon Valley Bank in the UK for 1 pound will be exchanged by the British bank HSBC.
Author:
anastasia mariana
Source: RB
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