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First Citizens Bank to buy Silicon Valley Bank: FDIC

Xinhua | Updated: 2023-03-27 16:42

First Citizens BancShares and SVB (Silicon Valley Bank) logos are seen in this illustration taken March 19, 2023. [Photo/Agencies]

WASHINGTON - The US Federal Deposit Insurance Corporation (FDIC) has entered a purchase and assumption agreement for all deposits and loans of Silicon Valley Bridge Bank, National Association, by First-Citizens Bank & Trust Company, according to an FDIC press release on Sunday.

The transaction included the purchase of about 72 billion US dollars of Silicon Valley Bank (SVB)'s assets at a discount of 16.5 billion dollars, said the FDIC. And according to its website, First Citizens owns around 109.3 billion dollars 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 insurance corporation noted.

Silicon Valley Bridge Bank, N.A. is a new bank created by the FDIC following the closure of SVB, and all deposits, assets and qualified financial contracts were transferred to the bridge bank.

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