Sale of the bankrupt Silicon Valley Bank
First Citizens BancShares, a financial services and banking company, announced on Monday that it will acquire the assets, deposits, and loans of Silicon Valley Bank, as well as some assets from the Federal Deposit Insurance Corporation.
As part of this deal, the Federal Deposit Insurance Corporation, in a separate statement, announced that after deducting the relevant liabilities, it was able to sell some of its assets in exchange for receiving shares of First Citizens BancShares valued at 500 million dollars.
According to this contract, First Citizens BancShares will purchase the assets of Silicon Valley Bank valued at 110 billion dollars, its deposits valued at 56 billion dollars, and its loans valued at 72 billion dollars.
It is said that the purchase of Silicon Valley Bank’s assets came with a discount equivalent to 165 billion dollars.