Deal with federal regulators will make lender one of the top 25 U.S. banks
First Citizens Bancshares Inc., FCNCB 1.85%increase; green up pointing triangle one of the nation’s largest regional banks, is buying large pieces of Silicon Valley Bank more than two weeks after the lender’s collapse sent tremors through the banking system.
The Federal Deposit Insurance Corp. said First Citizens FCNCB 1.85%increase; green up pointing triangle is acquiring all of Silicon Valley Bank’s deposits, loans and branches, which will open Monday morning under the new ownership.
The purchase includes $119 billion in deposits and about $72 billion of SVB’s loans at a discount of $16.5 billion. Some $90 billion of SVB’s securities will remain in receivership.
Regulators took control of Santa Clara, Calif.-based SVB on March 10. The collapse sparked a panic that led to the weekend failure of Signature Bank and a dramatic intervention by financial regulators aimed at easing fears that depositors would flee smaller lenders.
The sale represents a milestone in regulatory efforts to clean up after two of the largest bank failures in history, at a time when investors are on edge about the health of the global financial system.
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