First Citizens Bank acquires assets of failed Silicon Valley Bank

The 17 former branches of Silicon Valley Bank (SVB) opened as branches of First Citizens Bank on Monday. The Federal Deposit Insurance Corporation (FDIC) entered into a purchase agreement Sunday allowing First Citizens to assume most of the failed bank’s assets. First Citizens acquired it through a competitive bidding process and will now assume all SVB’s deposits and loans. The FDIC will continue to ensure all of the deposits First Citizens assumes.

How will SVB depositors access their funds? Silicon Valley Bank depositors will now be able to access their funds through First Citizens, though they’ll have to use their current branch until they’re added to First Citizens’ system. The FDIC estimates the failure of SVB cost the Deposit Insurance Fund about $20 billion.

Dig deeper: Read Jerry Bowyer’s column in WORLD Opinions on whether banks are under-regulated.