After collapse of the Silicon Valley Bank (SVB), First Citizens BancShares is reportedly considering buying the failed entity. As per updates, First Citizens may already be in advance talks to acquire SVB amid this crisis.
According to a Reuters report, First Citizens could finalise a deal soon to acquire the troubled Silicon Valley Bank from the Federal Deposit Insurance Corp (FDIC). It also adds that the company is considered to be one of the biggest buyers of failed US lenders.
Latest Update | Silicon Valley Bank Sold To First Citizens Amid Banking Crisis
The report adds that First Citizens has around $109 billion in assets and total deposits of around $89 billion. As of now, the FDIC controls the assets of the Silicon Valley Bank. However, if First Citizens takes over the SVB, it would own the assets.
The development comes after First Citizens reportedly submitted a bid for SVB immediately after its collapse. It was also reportedly active in the data room the FDIC set up for conducting another sale process.
On the other hand, the FDIC, after taking control of the Silicon Valley Bank has been trying to sell SVB Private alongside Silicon Valley Bank. However, the FDIC reportedly failed to reach a deal to sell them both together. Hence, it has been asking for separate offers and the last date for this was reportedly March 24.
The Silicon Valley Bank crisis has caused havoc throughout the banking sector. With the sudden collapse, many experts have predicted a major banking crisis coming.