3/27, 7:33 AM (Source: TeleTrader)
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FDIC: First Citizens agrees to acquire Silicon Valley Bank

All of Silicon Valley Bank's deposits will be acquired by First Citizens Bank & Trust Co, the Federal Deposit Insurance Corporation (FDIC) said early Monday.

According to a statement by the FDIC, the 17 branches of SVB will open on Monday, March 27, as First–Citizens Bank & Trust Company, while its clients "should continue to use their current branch until they receive notice." Moreover, depositors of SVB will automatically become depositors of First–Citizens Bank & Trust Company.

The agreement includes purchasing nearly $72 billion of SVB's assets at a discount of $16.5 billion. Besides, $90 billion in securities and other assets will stay in the receivership for disposition by the FDIC. "This has been a remarkable transaction in partnership with the FDIC that should instill confidence in the banking system," Frank Holding, Chief Executive Officer of First Citizens, said in a statement.

Baha Breaking News (BBN) / JG