North Carolina lender First Citizens will acquire the majority of the assets of the Silicone Valley Bank (SVB) for a heavy discount following a fall in investor confidence. According to the Federal Deposit Insurance Corporation, First Citizens will acquire $72bn of assets, $119bn of deposits, and 17 branches, while the FDIC will keep $90bn of SVB’s loans. As IT leasing companies are the bank’s main debt holders, the move it thought likely to lead to job losses in California. The FDIC stated that the bank’s collapse has led to a $20bn hole in its insurance fund, while the collapse of Signature Bank resulted in an additional $2.5bn loss. First Citizens has acquired almost two dozen failed banks from the FDIC since 2008 via deals, earning it the status of the 36th largest bank in the US.
FirstFT: Silicon Valley Bank to be Acquired by First Citizens
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