The US-based First Citizens Bank (FCB), has entered into a purchase and assumption agreement for all deposits and loans of the collapsed Silicon Valley Bank (SVB) valued at $72 billion (€66.9 billion), for a discounted rate of $15.5 billion (€14.4 billion).

According to a statement by the US Federal Deposit Insurance Corporation (FDIC), 17 former branches of SVB will be operated by the buyer, and existing customers will continue to use their current branch until they are informed otherwise by the new owners.

The estimated cost of the failure of SVB to the FDIC deposit insurance fund is estimated to be $20 billion (€18.6 billion), however, the full cost will be determined at a date later.

Approximately $90 billion (€83.7 billion) in securities and other assets previously owned by SVB will still be owned by the FDIC which will still remain “in receivership for disposition by the FDIC.” The FDIC will also receive equity appreciation rights in FCB at a potential value of $500 million (€465 million).

This is the latest sale of assets related to the failed SVB, weeks after its UK branch was sold to HSBC for £1.

Other banks that have faced collapse since SVB are the US-based Signature Bank, and Credit Suisse, the latter of which was sold to one of its competitors and Switzerland’s biggest bank, UBS.


Saudi production cut drives up oil prices

June 5, 2023
by Robert Fenech

The Kingdom’s cut is its biggest in years

Air Malta moves to Terminal 2 at Paris Orly Airport

June 1, 2023
by Arnas Lasys

The airline operates daily flights between the airports

British telecoms company BT to axe 55,000 jobs by 2030 amid AI integration

May 19, 2023
by Arnas Lasys

Automation and AI will replace 10,000 of its jobs