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By CNBCTV18.com Mar 28, 2023 8:47:27 AM IST (Published)
According to the deal, First Citizens Bank will purchase approximately $72 billion of the SVB assets at a discount of $16.5 billion. However, around $90 billion in securities and other assets will remain in receivership for disposition by the FDIC. First Citizens has also acquired SVB Private.
Regulatory authorities announced on Monday that they would backstop First Citizens BancShares' acquisition of Silicon Valley Bank. The announcement triggered a $20 billion hit to a government-run insurance fund.
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According to the deal, First Citizens Bank will purchase approximately $72 billion of the SVB assets at a discount of $16.5 billion. However, around $90 billion in securities and other assets will remain in receivership for disposition by the FDIC. First Citizens has also acquired SVB Private.
Frank Holding, CEO of First Citizens, told investors on a conference call that the deal was "momentous". "We believe this transaction is a great outcome for depositors."