First Citizens to Acquire Silicon Valley Bank

Mar 27, 2023 11:58 AM Merolagani

First Citizens BancShares will acquire Silicon Valley Bank, the California lender whose collapse this month sent shock waves across the financial sector.

The Federal Deposit Insurance Corporation seized control of Silicon Valley Bank on March 10, after a run on deposits had left it insolvent. The F.D.I.C., which announced the deal late Sunday, has since been looking for a buyer for the bank, either in its entirety or in pieces.Silicon Valley Bank, which became Silicon Valley Bridge Bank after the F.D.I.C seized it, has 17 branches in California and Massachusetts. It was the country’s 16th-largest bank when the government took it over, though it is unclear how much of that remains. Its collapse was the largest bank failure in the United States since the 2008 financial crisis.

Silicon Valley Bank’s former parent company, SVB Financial, filed for bankruptcy on March 17. It plans to run a separate process to sell various units, including the investment manager SVB Capital and the brokerage firm SVB Securities.

The collapse of Silicon Valley Bank set off tremors across the financial sector.

On March 19, New York Community Bancorp acquired the defunct Signature Bank a week after the F.D.I.C seized its operations. The deal included around $38 billion in assets, including $12.9 billion in loans, purchased at a discount of $2.7 billion. Roughly $60 billion of Signature’s loans were not included in the deal.

(The New York Times

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