FDIC says deposits and loans from bankrupt SVB went to First-Citizens Bank
MOSCOW, March 27 – RIA Novosti. The US Federal Deposit Insurance Corporation (FDIC) said that deposits and loans from the bankrupt Silicon Valley Bank (SVB) were transferred to US First-Citizens Bank.
“Federal Deposit Insurance Corporation (FDIC), Silicon Valley Bridge Bank, has signed an agreement to purchase and accept all deposits and loans from the National Association Bank First-Citizens Bank & Trust Company,” a regulatory press release said.
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Silicon Valley Bridge Bank was established by the FDIC in early March as a buyer of Silicon Valley Bank assets. On Monday, March 27, it was noted that 17 former branches of Silicon Valley Bridge Bank will open as divisions of First-Citizens Bank & Trust Company.
The FDIC and First-Citizens Bank will share potential losses and collections on Silicon Valley Bank loans. Such an agreement is expected to minimize disruption to borrowing customers.
As of March 10, Silicon Valley Bridge Bank had roughly $167 billion in assets and $119 billion in deposits, according to the FDIC.
California regulators closed Silicon Valley Bank, one of the twenty largest banks in the United States, on March 10. This was the largest bank failure in the United States since the 2008 financial crisis. The collapse of the SVB was associated with an increase in the US Federal Reserve’s discount rate, which led to the depreciation of assets on the balance sheets of many financial institutions.
Also in March, US authorities closed major New York Signature Bank due to systemic risks and crypto-focused bank Silvergate.
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I am Emma Sickels, a highly experienced journalist specializing in news and economy. As an author at News Unrolled, I cover the latest trends in the economic sector and provide readers with valuable insights into its complexities. My work has been featured in various media outlets such as The New York Times, USA Today, Bloomberg Businessweek and many more.
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