The bank holding company First Citizens Bank & Trust Company has started buying deposits and loans of the bankrupt Silicon Valley Bank (SVB).
This was announced on March 26 on its website by the Federal Deposit Insurance Corporation (FDIC).
The department clarified that an agreement was concluded “on the purchase and acceptance of all deposits and loans of Silicon Valley Bridge Bank by First Citizens Bank & Trust Company.”
Already on March 27, 17 branches of the “intermediate bank” Silicon Valley Bridge Bank will be opened as belonging to First Citizens Bank & Trust Company. SVB depositors will “automatically become depositors” of the buyer bank.
“All deposits accepted by First-Citizens Bank & Trust Company will continue to be insured by the FDIC up to the insurance limit,” the insurance corporation said.
As of March 10, the total assets of Silicon Valley Bridge Bank was about $167 billion, and the total amount of deposits was about $119 billion.
The deal included the purchase of Silicon Valley Bridge Bank for about $72 billion. Securities and other assets worth about $90 billion will remain at the disposal of the FDIC.