Just two weeks after the biggest financial crash in the United States/ since Lehman Brothers, First Citizens Bank & Trust Co. is about to buy loans and deposits from Silicon Valley Bank.
The agreement involves the purchase of approximately $72 billion in SVB assets at a discount of $16.5 billion. Although, approximately $90 billion in securities and other assets would remain under receivership for disposition by the FDIC.
The FDIC said in a release, “In addition, the FDIC received equity appreciation rights in First Citizens BancShares, Inc., Raleigh, North Carolina, common stock with a potential value of up to $500 million.”
It happens after the regulator, to safeguard SVB depositors, placed all deposits and assets into a new “bridge bank” earlier this month.
“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 statement