Good News for Start-Up Companies: The Sunken Bank Silicon Valley is Rescued!

Usually American Start-up Silicon Valley, the bank that companies invest in, is being bought by another bank.

Another American Bank Acquires Silicon Valley, the Failed Bank Where Start-Ups Invest

From the Federal Deposit and Insurance Agency (FDIC) According to the statement, the North Carolina-based First Citizens Bank, Silicon Valley Bank’s It is preparing to buy all its deposits and loans.

Today, we entered into an agreement with First-Citizens Bank & Trust Company to purchase and assume all deposits and loans of Silicon Valley Bridge Bank, NAhttps://t.co/vjDsnQxhrr pic.twitter.com/MI5lXN5y6r

— FDIC (@FDICgov) March 27, 2023

Under the agreement, all 17 Silicon Valley Bank’s former branches will open as First Citizens Bank and Trust Company on Monday, March 27, while all SVB’s depositors will automatically become First Citizens Bank’s depositors.

“As of March 10, 2023, Silicon Valley Bridge Bank, National Association, had total assets of approximately $167 billion and total deposits of approximately $119 billion.

Today’s transaction includes the acquisition of approximately $72 billion of Silicon Valley Bridge Bank, National Association’s assets at a $16.5 billion discount.”

The North Carolina-based bank is the 30th largest commercial bank in the United States and has $109.2 billion in assets as of December 31, 2022, according to Federal Reserve data.

Silicon Valley Bank collapsed on March 10 after rumors of a serious liquidity crisis at the bank caused the bank to fail. The FDIC was then appointed as the trustee of the bank that failed and tried to auction the bankruptcy.

It has been reported by Bloomberg that First Citizens plans to bid for SVB as early as March 18. Three days later, it was reported that he had submitted bids for the entire SVB.

At the time, a First Citizens spokesperson declined to comment on “market rumors or speculation.”

*Not investment advice.