by Madeleine Hubbard
The Federal Deposit Insurance Corp. agreed that the North Carolina-based First-Citizens Bank & Trust Co. can acquire the troubled Silicon Valley Bank, and 17 branches of the California-based bank will reopen Monday as branches of First-Citizens.
The FDIC said Sunday that the purchase will involve all deposits and loans of Silicon Valley Bank, but the failure of the bank is estimated to still cost insurers $20 billion.
First-Citizens purchased about $72 billion of Silicon Valley Bank’s assets, with a discount of $16.5 billion, but about $90 billion will remain under FDIC control, the federal agency said.
Silicon Valley Bank was taken over by federal regulators earlier this month after the government warned the bank’s managers about the institution’s serious weaknesses and risky practices for more than a year.
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Madeleine Hubbard joined Just the News as a fast file reporter after working as an editor at Breitbart News. Hubbard previously served as the special assistant to the Assistant Secretary of Public Affairs at the U.S. Department of Health and Human Services during the first year of the COVID-19 pandemic.
Photo “First-Citizens Bank” by Akhenaton06. CC BY-SA 3.0.