Big relief to the customers of the bankrupt Silicon Valley Bank! the bank took responsibility for all deposit-loans

The FDIC said in a press release that the 17 former branches of Silicon Valley Bridge Bank will open as First-Citizens Banks on March 27, 2023 (Monday).The regulator (Federal Deposit Insurance Corporation) said in a statement on Monday that First Citizens Bank & Trust Company will purchase all deposits and loans of Silicon Valley Bank from the Federal Deposit Insurance Corporation (FDIC)The FDIC said it "has entered into an agreement to purchase all deposits and loans of Silicon Valley Bridge Bank, National Association on behalf of First-Citizens Bank & Trust Company, Raleigh, North Carolina. 

17 branches of SVB will now open as First Citizen Bank

The FDIC said in a press release, "The 17 former branches of the Silicon Valley Bridge Bank National Association will open as First-Citizens Bank & Trust Company on Monday, March 27, 2023. SVB customers should continue to use their current branch until they receive notice from First Citizens Bank that the system conversion has been completed to allow full banking service at all its other branches. 

Depositors of SVB will automatically become depositors of First Citizens Bank

The regulator said that depositors of SVB would automatically become depositors of First Citizens Bank and all deposits accepted by the bank would continue to be insured by the FDIC.

As of March 10, the SVB had about $167 billion in total assets and about $119 billion in total deposits. According to the FDIC, "Today's transaction consisted of the purchase of Silicon Valley Bridge Bank for approximately $72 billion, including the National Association discount of $16.5 billion. 

“Approximately $90 billion in securities and other assets will remain in receivership for disposal by the FDIC,” the report said. In addition, the FDIC received equity shares of First Citizens Bank in Raleigh, North Carolina with a potential value of approximately $500 million.