Updated: Jun 8
- First Citizen Bank to purchase SVB
- Brief overview of First Citizen Bank
All deposits assumed by First Citizen Bank from SVB will still be insured by FDIC up to the insured limit.
First Citizen BancShares has agreed to acquire SVB which was under FDIC's control. The bank reached an agreement to assume all SVB deposits and loans after the purchase of SVB. The transaction covers 119 Billion USD in deposits and 72 Billion USD in assets. 17 of SVB's branches will reopen as First Citizens. FDIC disclosed that the estimated cost of failure to deposit was 20 Billion USD. The precise cost will be determined when the receivership is ended. As of now, 90 Billion USD in securities and deposits will remain under FDIC's receivership for disposition.
First Citizens BancShares is a bank holding company based in Raleigh, Northern California. It was established in the year 1898. The main subsidiary is First Citizen Bank, one of the United States' largest banks. It has 550 branches across 22 states.
First Citizen Bank's Possessions
Silicon Valley Bank sold to First Citizens Bank (no date) WION. Available at: https://www.wionews.com/business-economy/silicon-valley-bank-sold-to-first-citizens-bank-576098 (Accessed: March 28, 2023).