"First Citizens" Acquires Silicon Valley Bank

First Citizens Bank has agreed to acquire the collapsed Silicon Valley Bank (SVB), which was taken over by the Federal Deposit Insurance Corporation (FDIC) earlier this month. According to a statement from the FDIC, the Raleigh, North Carolina-based lender has entered into a purchase agreement that includes all deposits and loans associated with SVB. The deal involves acquiring approximately $72 billion in SVB assets at a discount of $16.5 billion. About $90 billion in securities and other assets will remain in receivership for the FDIC to manage, while the federal agency also obtained equity appreciation rights in First Citizens valued at up to $500 million. According to the statement reported by Forbes, the estimated cost of the deposit insurance fund's failure is around $20 billion, although the exact extent will be determined upon the conclusion of the receivership.