First Citizens Bank Buys Silicon Valley Bank – Branches Now Open For Business – NewsTo
First Citizens Bank Buys Silicon Valley Bank – Branches Now Open For Business

First Citizens Bank Buys Silicon Valley Bank – Branches Now Open For Business

Silicon Valley Bank was acquired by First Citizens Bank Shares for $500 million from the Federal Deposit Insurance Corporation (FDIC).

FDIC  released a statement regarding the agreement on March 26. According to a statement  North Carolina-based First Citizens Bank is going to acquire custody of all of Silicon Valley Bank’s deposits and loans.

In accordance with a March 26 purchase and assumption agreement, 17 former Silicon Valley Bank branches will reopen as First Citizens Bank and Trust Company on March 27. Moreover, all SVB depositors will automatically become First Citizens Bank depositors.

The FDIC said in a statement, “Today’s transaction included the purchase of approximately $72 billion of Silicon Valley Bridge Bank’s assets at a discount of $16.5 billion.”

The FDIC will continue to be in charge of the receivership’s approximately $90 billion worth of securities and other assets. Additionally, the FDIC obtained equity appreciation rights on First Citizens BancShares, Inc. common stock valued at up to $500 million.

The bank, which has its headquarters in North Carolina, Is the 30th-largest commercial bank in the country as of March 10 and had $119 billion in deposits in addition to its $167 billion total assets.

On March 10, Silicon Valley Bank collapsed as a consequence of a bank run sparked by rumours of a serious liquidity crisis within the institution. The FDIC was then designated as the failing bank’s receiver, and it attempted to put the bank up for auction.

Two separate auctions were held for SVB’s assets: one for its traditional deposits division and the other for its high-net-worth private bank, which is housed within its retail operations.

First Citizens Bank Buys Silicon Valley Bank - Branches Now Open for Business

Numerous firms were speculated to have either planned or offered bids for the collapsed U.S. bank.

According to Bloomberg, First Citizens began planning an SVB offer as early as March 18. It apparently made an offer for the entirety of SVB three days later. A First Citizens representative declined to comment at the time on “market rumours or speculation.”

It’s also believed that Valley National Bancorp, another local bank, made an offer for the failed institution.

A third U.S. regional bank, Citizens Financial Group, may have been preparing to make a bid for SVB’s private banking division, according to a March 24 Reuters report.

Read more: Silicon Valley Bank Collapse Might Trigger A Run On US Regional Banks

After SVB’s acquisition, will Bitcoin prices rebound?

In the meantime, Bitcoin liquidity has reached a 10-month low. Liquidity is an indicator of how simple it is to buy and sell cryptocurrencies. Despite the fact that the price of Bitcoin has risen by over 70% since the start of the year, the current banking crisis, inflationary pressure, and uncertain macroeconomic environment are preventing it from reaching $28,000.

A very strong support wall between $27,170 and $27,970, where more than 700,000 BTC were purchased by 1.45 million addresses, is where bitcoin is presently trading. Bitcoin is currently worth $27,730, an increase of 1% over the previous 24 hours.

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