The Federal Deposit Insurance Corporation (FDIC) announced Sunday night that First Citizens BancShares made a deal to acquire Silicon Valley Bank (SVB), the recently failed tech lender.
On March 10, the federal regulator took over SVB, making it Silicon Valley Bridge Bank, following a bank run that caused it to collapse. The FDIC then sought a buyer for the bank, either as a whole or in segments, and found one in First Citizens in a transaction including $72 billion in assets — a discount of $16.5 billion, according to the FDIC statement.
About $90 billion in SVB’s securities and other assets were not part of the acquisition and will stay in the ownership of the FDIC, according to the statement. The FDIC also will get equity appreciation rights tied to the stock of First Citizens, which may be worth up to $500 million, according to the statement.
The federal regulator estimated SVB’s failure will cost the FDIC’s Deposit Insurance Fund (DIF) roughly $20 billion.
SVB’s 17 former branches opened as First-Citizens Bank & Trust Company on Monday. Its depositors automatically transferred to First Citizens and will be insured by the FDIC’s $250,000 cap, according to the statement.
SVB was the 16th-largest bank in the U.S. and its failure was the largest in the nation since 2008.
Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact licensing@dailycallernewsfoundation.org