First Citizens Bank Acquires Silicon Valley Bank

Daily Wire: The FDIC revealed in a statement that the 17 branches of Silicon Valley Bank will be operated by First Citizens Bank as soon as Monday, while all depositors will automatically become account holders at the company. First Citizens Bank will purchase $72 billion of Silicon Valley Bank’s assets at a discount of $16.5 billion, while $90 billion will remain with the FDIC. First Citizens Bank, based in Raleigh, North Carolina, will assume management of $56 billion in Silicon Valley Bank deposits. The failure of Silicon Valley Bank cost the Deposit Insurance Fund, which is funded by fees on banks, an estimated $20 billion (Daily Wire). 

CNBC: The sale excludes investment securities, meaning the FDIC is stuck with SVB’s bonds that have dropped in value, and which helped spark the firm’s demise (CNBC).