First Citizen Buys Silicon Valley Bank From FDIC In US

Silicon Valley Bank: America’s Silicon Valley Bank was surrounded by financial crisis and today big news has come about it. Today this bank has been bought by First Citizen Bank. To get the bank out of the financial crisis, First Citizen Bankshare Inc. has bought it from the Federal Deposit Insurance Corporation. After the collapse of this bank, the Federal Deposit Insurance Corporation was appointed as its regulator.

First Citizens Bank agrees to buy all of Silicon Valley Bank’s deposit-loans

According to a statement issued by the Federal Deposit Insurance Corporation, First Citizens Bank and Trust has agreed to buy all deposits and loans of Silicon Valley Bank. If you look at the total assets of Silicon Valley Bank, on March 10, it was at $ 167 billion and its total deposits were $ 119 billion. In this transaction, assets worth $72 billion of Silicon Valley Bank were bought at a discount. These assets have been bought at a discounted price of $16.5 billion.

Learn about Silicon Valley Bank

Silicon Valley Bank was the 16th largest bank in the US and provided financial support to new-age tech companies and companies investing in venture capital. The bank also had deposits of several cryptocurrency firms. This bank was started in the year 1983 in Santa Clara, California and it was considered to be the biggest pro bank of the tech industry. In the year 2021, the bank claimed that it is involved in giving money to about half of the venture backed startups in America.

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