First Citizens to acquire deposits and loans of failed SVB
By 
Aaron Nicodemus2023-03-27T16:44:00
The deposits and loans of the failed Silicon Valley Bank (SVB) have been purchased by First Citizens Bank & Trust, although about $90 billion in securities and other assets will remain in receivership.
The Federal Deposit Insurance Corporation (FDIC) announced the sale Sunday of some of SVB’s assets to North Carolina-based First Citizens Bank, following the agency’s takeover of SVB on March 10. The purchase represents $110 billion of the assets of Silicon Valley Bridge Bank, including $56 billion in deposits and $72 billion in loans, First Citizens said Monday in a press release.
SVB’s loan portfolio was sold at a discount of $16.5 billion, the FDIC said. The FDIC and First Citizens entered into a share-loss agreement in which the agency and bank will share in potential losses and recoveries in SVB’s loan portfolio.
THIS IS MEMBERS-ONLY CONTENT
You are not logged in and do not have access to members-only content.
If you are already a registered user or a member, SIGN IN now.
Related articles
-
PremiumLeadership, resource support key to compliance navigating bank turmoil
In sudden bank buyouts, the workload on compliance departments skyrockets as new customers are nearly instantly assumed by the purchasing bank. Experts share their take on managing the resulting risks.
-
PremiumExperts: Fraud risks heightened amid banking turmoil
The stunning, rapid collapse of Silicon Valley Bank, fueled in its final days by droves of panicked depositors seeking funds, likely added to the chaos within the bank and ratcheted up the risk of fraud, according to legal experts.
-
News BriefYellen says regs might cover deposits of other struggling banks
Treasury Secretary Janet Yellen said federal regulators are willing to extend the same financial assistance—perhaps even extended deposit insurance—to mid-sized banks struggling to handle the fallout from the failures of Silicon Valley Bank and Signature Bank.
More from Risk Management
-
ArticleGeopolitical risks and global threats drive emerging national security compliance teams
Geopolitical uncertainty is becoming the defining feature of the decade, and global powers are increasingly using geo-economic power to promote national interest and defend their critical interests. Multinational companies, consultants, and global law firms are responding by setting up dedicated national security teams.
-
ArticleNew report shows how illegal mining intersects with financial crimes
Hundreds of billions of dollars in illicit funds move through the global financial system each year through the operations of environmental crimes linked to transnational criminal organizations. Illegal mining, in particular, directly exposes global financial institutions to a wide range of risks.
-
ArticleWhat to do when the CEO is the 'biggest AI risk' to the organization
For the past few years, companies have been grappling with how to control employees’ use of AI in the workplace, but it seems that executives are the most likely to flout the rules and put the organization at risk.