Collapse of tech sector lender will cost about $20bn in deposit insurance payouts, say US regulators
– including those not federally insured – fearing that contagion would spread across the sector.
The SVB entity had about $167bn in total assets and about $119bn in total deposits on 10 March, the FDIC said. First Citizens bought about $72bn of the assets of the failed bank at a discount of $16.5bn. First Citizens will also take over and run the 17 SVB branches.for £1 in a rescue deal two weeks ago.
First Citizens was founded in 1898 to serve North Carolina’s farmers. In 1935, RP Holding took over the leadership of the bank, and since then it has been run by his descendants. It survived the financial crisis of 2008 intact and since then, under the leadership of Frank B Holding Jr and his sister Hope Holding Bryant, it has grown through acquisitions. A $2bn deal last year to take over the business lender CIT Group pushed it into the top 20 US banks by assets, according to the company.
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