First Citizens to buy Silicon Valley Bank, FDIC says
Business
The 17 former branches of SVB will open as First–Citizens banks on Monday.
(Reuters) - First Citizens BancShares Inc (FCNCA.O) will acquire all of Silicon Valley Bank's (SIVB.O) deposits and loans from the Federal Deposit Insurance Corporation (FDIC), according to the regulator.
The acquisition 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 in a statement.
"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 on Monday said.
The FDIC has received rights in First Citizens BancShares stock with a potential value of up to $500 million as part of the deal, the statement said.
The 17 former branches of SVB will open as First–Citizens banks on Monday.
Approximately $90 billion in securities and other assets from SVB will remain in receivership for dispersal, the regulator added.
First Citizens has around $109 billion in assets and total deposits of $89.4 billion.
