First Citizens, a small US bank based in North Carolina, has acquired Silicon Valley Bank (SVB) for $16.5bn following its closure due to the Bank Run crisis.
The Federal Deposit Insurance Corporation (FDIC) confirmed the purchase, which represents a discount of approximately 77% based on SVB’s assets of around $72bn.
However, assets worth around $90bn will remain under FDIC’s legal management. The FDIC had established a corporation named National Bank of Deposit Insurance after SVB’s closure to facilitate its sale, which eventually went to First Citizens.