Chapter closed in the banking crisis unleashed in the United States. First Citizens, a North Carolina entity, has agreed to purchase Silicon Valley Bridge Bank, an entity created by the authorities after the intervention of Silicon Valley Bank (SVB) on March 10. All 17 SVB branches will open this Monday under the new name.
In total, it will acquire assets for some 72,000 million dollars -66,897 million euros- including all deposits and credits. It will do so with a discount of 16,500 million dollars -15,330 million euros-.
Around 90,000 million dollars -83,621 million euros- in securities and other assets will remain under receivership for disposal by the state Federal Deposit Insurance Corporation (FDIC). In addition, the FDIC has received rights to First Citizens common stock with a potential value of up to $500 million (465 million euros).
The FDIC estimates that the cost of the bankruptcy of Silicon Valley Bank for its Deposit Insurance Fund (DIF) amounts to about 20,000 million dollars (18,582 million euros). SVB depositors, second largest drop ever after Washington Mutual bankruptcy in 2008, will automatically become First–Citizens Bank depositors