North Carolina-based First Citizens Bank & Trust Company has entered into a purchase and assumption agreement with the U.S. Federal Deposit Insurance Corp (FDIC) for the deposits and loans of Silicon Valley Bridge Bank, the entity set up by the FDIC after Silicon Valley Bank’s failure earlier this month.
Silicon Valley Bank sold at a discount of $16 billion
According to a press release by the , 17 branches of Silicon Valley Bridge Bank are set to open as First–Citizens Bank & Trust Company today. As part of the arrangement, all depositors of Silicon Valley Bridge Bank will automatically become depositors of First Citizens Bank & Trust Company.
The transaction between the FDIC and First Citizens will see the latter assume nearly $72 billion of Silicon Valley Bank’s debt, along with $56 billion of its deposits, representing a discount of a whopping $16 billion. Roughly $90 billion in securities and other assets will remain in the FDIC’s receivership. The federal agency revealed that it had also acquired equity appreciation rights in First Citizens Banc
