Key Takeaways
- First Citizens Bank is acquiring the bulk of Silicon Valley Bank’s deposits and loans, roughly doubling the size of the bank
- They’ve been able to purchase the assets at a discount of $16.5 billion
- First Citizens Bancshares have rocketed on the news, up over 50% on Monday after the announcement
While depositors have been protected, the clean up from the Silicon Valley Bank (SVB) collapse has been ongoing in the background. In the weekend following the shutdown, a new bridging bank, backed by the FDIC, was set up as an interim measure to continue to provide banking services to SVB customers.
But this was only ever a temporary measure, and a buyer for the majority of SVB’s assets has now been found. The proud new owner of the loans and deposits is North Carolina-based First Citizens Bank.
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