Silicon Valley assets, loans sold for $72b

Published March 27th, 2023 - 07:19 GMT
Silicon Valley assets, loans sold for $72b
The SVB Private logo is displayed outside of a Silicon Valley Bank branch in Santa Monica, California on March 20, 2023. (Photo by Patrick T. Fallon / AFP)
Highlights
First Citizens Bank is buying Silicon Valley's deposits and loans at $72 billion.

ALBAWABA - First Citizens Bank & Trust Co will buy Silicon Valley Bank’s deposits and loans from the U.S. Federal Deposit Insurance Corporation (FDIC) for $72 billion.

The FDIC, which announced the deal late Sunday, seized control of Silicon Valley Bank on March 10 after a run on the bank left it insolvent.

Silicon Valley was America's 16th-largest bank when the government took it over. Its collapse sent jitters across the market because it was the largest bank failure in the United States since the 2008 financial crisis.

The deal for the bank, which became Silicon Valley Bridge Bank after the F.D.I.C seized it, included the purchase of about $72 billion of assets, at a discount of $16.5 billion.

Another $90 billion in securities and other assets were not included and will remain "in receivership for disposition by the FDIC."

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