In a major development in the on-going US banking crisis, the Silicon Valley Bank (SVB) has been sold to First Citizens. As per updates, the Federal Deposit Insurance Corp (FDIC) has gone into an agreement with the First Citizens and acquired SVB as the bank navigates tricky waters after its collapse (SVB crash).
According to media reports, all deposits assumed by the First Citizens Bank & Trust Company, the new owner of SVB will continue to be insured by the FDIC up to the insurance limit. All the assets of SVB will now also come under the control of First Citizens, after the acquisition from FDIC.
Media reports suggest that the FDIC has entered into a purchase and assumption agreement for all deposits and loans of the Silicon Valley Bridge Bank. In addition to this, the depositors of Silicon Valley Bridge Bank, National Association will automatically become the depositors of First Citizens Bank & Trust Company. An official press release reads, "All deposits assumed by First Citizens Bank & Trust Company will continue to be insured by the FDIC up to the insurance limit."
Before this sale, Reuters reported that First Citizens was already in advance talks with FDIC to acquire Silicon Valley Bank. Ever since the banking crisis led to the collapse of the SVB, First Citizens had reportedly been showing interest in taking over the troubled bank.
Disclaimer: This is a developing story. Please check back for more details
