First Citizens BancShares Inc FCNCA.O said on Monday it will acquire the deposits and loans of failed Silicon Valley Bank SIVB.O, closing one chapter in the crisis of confidence that has ripped through global financial markets.
The Federal Deposit Insurance Corporation (FDIC), which took control of SVB earlier this month, said in a separate statement it has received equity appreciation rights in First Citizens BancShares stock with a potential value of up to $500 million as part of the deal.
Under the deal, unit First–Citizens Bank & Trust Company will assume SVB assets of $110 billion, deposits of $56 billion and loans of $72 billion.
“Prudent risk management approach will continue to protect customers and stockholders through all economic cycles and market conditions,” the statement said.
SVB was the largest bank since the 2008 financial crisis to collapse when California regulators closed the bank on March 10 which sparked massive market disruption and heightened stresses across the banking sector globally.
“The move is positive for financial stability and the venture capital industry,” said Gary Ng, senior economist at Natixis Hong Kong, though he added was not completely clear whether SVB’s role in the venture capital industry would be carried over by the new entity going forward.
Based in Santa Clara, SVB was ranked as the 16th biggest lender in the U.S. at the end of last year, with about $209 billion in assets.
“The FDIC estimates the cost of the failure of Silicon Valley Bank to its Deposit Insurance Fund (DIF) to be approximately $20 billion. The exact cost will be determined when the FDIC terminates the receivership,” it said.
Approximately $90 billion in securities and other assets from SVB will remain in receivership for disposal, the regulator added.
From Monday, SVB’s 17 former branches will begin operating as Silicon Valley Bank, a division of First Citizens Bank.
First Citizens has around $109 billion in assets and total deposits of $89.4 billion.
I know and can recommend a very efficient and trustworthy hacker. I got his email address on Quora , he is a very nice and he has helped me a couple of times even helped me recover stolen funds in my Coinbase account at a very affordable price. he offers a top notch service and I am really glad I contacted him. He’s the right person you need to talk to if you want to retrieve your stolen crypto currencies & bitcoin accounts, deleted/old texts, call logs ,emails ,photos and also hack any of your spouse’s social network account Facebook,
twitter, Instagram, messenger chats, snapchat, reddit, telegram, tinder and WhatsApp, He offers a legit and wide range of hacking services. His charges are affordable and reliable, This is my way of showing appreciation for a job well done. contact him for help via address below..
Email : Leonardomitnickhacking@gmail. com