First Citizens BancShares buys out part of Silicon Valley Bank

First Citizens BancShares to acquire assets SVB worth $72 billion at a discount of $16.5 billion. This follows from the purchase agreement, according to a statement FDICwrites Bloomberg.

The deal included deposits worth $56 billion. 17 branches of the organization undergoing reorganization will continue to operate under the same name. SVB clients will not notice any changes in the work of the institution.

$90 billion in securities and other assets of Silicon Valley Bank will remain at the disposal of the FDIC. The estimated cost of SVB’s bankruptcy will be $20 billion. The exact figure will be determined after the termination of bankruptcy proceedings.

The agency received the rights to increase the price of the buyer’s shares in the amount of up to $500 million.

The agency recalled the expertise of First Citizens in buying out troubled competitors. Since 2009, the organization has carried out over 20 such transactions.

As with Signature Bank, the Corporation was unable to find a buyer for the entire SVB.

According to Reuters, the FDIC has asked banks interested in acquiring Silicon Valley Bank and Signature Bank to refrain from any interaction with cryptocurrencies. The representative of the department, referring to the previous comments of its head Martin Grunberg, pointed out the incorrectness of such assumptions. Before that, employees spoke in a similar vein. NYDFS.

On March 10, the California Department of Financial Protection and Innovation closed SVB due to “lack of liquidity and insolvency” and transferred it to the FDIC.

On March 13, US authorities began the process of reorganizing Silicon Valley Bank and Signature Bank.

The regulators said savers would gain access to their deposits at the expense of shareholders and some unsecured bond holders.

Amid the collapse of SVB, the stablecoin USDC and algorithmic stablecoins DAI and FRAX lost their peg to the US dollar. Later, Circle, the USDC issuer, gained access to $3.3 billion in deposits at the collapsed bank.

Previously IMF warned about the negative impact of cryptocurrencies on credit institutions.

Recall that representatives of the USDC stablecoin co-issuers – Circle and Coinbase – said that problems in the banking sector led to uncertainty in the digital asset market.

First Citizens BancShares to acquire assets SVB worth $72 billion at a discount of $16.5 billion. This follows from the purchase agreement, according to a statement FDICwrites Bloomberg.

The deal included deposits worth $56 billion. 17 branches of the organization undergoing reorganization will continue to operate under the same name. SVB clients will not notice any changes in the work of the institution.

$90 billion in securities and other assets of Silicon Valley Bank will remain at the disposal of the FDIC. The estimated cost of SVB’s bankruptcy will be $20 billion. The exact figure will be determined after the termination of bankruptcy proceedings.

The agency received the rights to increase the price of the buyer’s shares in the amount of up to $500 million.

The agency recalled the expertise of First Citizens in buying out troubled competitors. Since 2009, the organization has carried out over 20 such transactions.

As with Signature Bank, the Corporation was unable to find a buyer for the entire SVB.

According to Reuters, the FDIC has asked banks interested in acquiring Silicon Valley Bank and Signature Bank to refrain from any interaction with cryptocurrencies. The representative of the department, referring to the previous comments of its head Martin Grunberg, pointed out the incorrectness of such assumptions. Before that, employees spoke in a similar vein. NYDFS.

On March 10, the California Department of Financial Protection and Innovation closed SVB due to “lack of liquidity and insolvency” and transferred it to the FDIC.

On March 13, US authorities began the process of reorganizing Silicon Valley Bank and Signature Bank.

The regulators said savers would gain access to their deposits at the expense of shareholders and some unsecured bond holders.

Amid the collapse of SVB, the stablecoin USDC and algorithmic stablecoins DAI and FRAX lost their peg to the US dollar. Later, Circle, the USDC issuer, gained access to $3.3 billion in deposits at the collapsed bank.

Previously IMF warned about the negative impact of cryptocurrencies on credit institutions.

Recall that representatives of the USDC stablecoin co-issuers – Circle and Coinbase – said that problems in the banking sector led to uncertainty in the digital asset market.