First Citizens Buys Silicon Valley Bank
Summary from the AllSides News Team
First Citizens, one of the nation's biggest regional banks, is acquiring all of failed Silicon Valley Bank’s deposits, loans and branches.
The Details: According to the Federal Deposit Insurance Corporation (FDIC), the 17 Silicon Valley Bank (SVB) branches will open Monday morning under the new ownership, and SVB depositors will automatically become First Citizens depositors. The purchase includes $119 billion in deposits and roughly $72 billion of SVB’s loans at a discount of roughly $16.5 billion. Another $90 billion of SVB’s securities will remain in receivership, a legal tool used to help depositors protect and recover money. The FDIC expects Silicon Valley Bank's failure to cost its Deposit Insurance Fund around $20 billion.
For Context: The government took control of SVB on March 10 after a run on the bank. The failure sparked panic among banks and depositors, with Signature Bank failing soon after. SVB and Signature are the second- and third-largest bank failures in U.S. history.
How the Media Covered It: Finance-focused sources across the spectrum highlighted the news as a top story Monday.
Featured Coverage of this Story
From the Center
First Citizens Acquires Much of Failed Silicon Valley Bank
First Citizens Bancshares Inc., one of the nation’s largest regional banks, is buying large pieces of Silicon Valley Bank more than two weeks after the lender’s collapse sent tremors through the banking system.
The Federal Deposit Insurance Corp. said First Citizens is acquiring all of Silicon Valley Bank’s deposits, loans and branches, which will open Monday morning under the new ownership.
The purchase includes $119 billion in deposits and about $72 billion of SVB’s loans at a discount of $16.5 billion. Some $90 billion of SVB’s securities will remain in receivership.
Regulators took control of Santa...
From the Left
First Citizens Buys Silicon Valley Bank After Run on Lender
First Citizens BancShares Inc. agreed to buy Silicon Valley Bank, which was seized by regulators following a run on the lender.
The bank agreed to take on all deposits and loans, a deal that includes the purchase of about $72 billion SVB assets at a discount of $16.5 billion, according to a statement from the Federal Deposit Insurance Corp. The agency took control of the bank after SVB collapsed earlier this month.
About $90 billion in securities and other assets will remain in the receivership for disposition by the FDIC,...
From the Right
FDIC says First Citizens Bank has reached deal to purchase Silicon Valley Bank
The Silicon Valley Bank finally has a buyer.
On Sunday, the Federal Deposit Insurance Corporation (FDIC) announced First-Citizens Bank & Trust Company of Raleigh, North Carolina entered a purchase agreement for all deposits and loans of Silicon Valley Bridge Bank, National Association.
"The 17 former branches of Silicon Valley Bridge Bank, National Association, will open as First–Citizens Bank & Trust Company on Monday, March 27, 2023," the FDIC said in a statement.
"Customers of Silicon Valley Bridge Bank, National Association, should continue to use their current branch until they receive notice from...
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