First Citizens To buyout SVB After Collapse
Activity is buzzing as First Citizens BancShares, Inc. has announced that they plan to purchase all remaining assets of Silicon Valley Bank after its collapse earlier this month. According to the Economic Times, First Citizens is expected to buy $72 billion of remaining assets linked to the bank while the FDIC retains approximately $90 billion in securities.
Following the acquisition, Silicon Valley Bank depositors will be automatically switched to depositors of First Citizens. Deposits taken by Silicon Valley Bank and changed to First Citizens will remain fully insured by the FDIC.
The announcement has already created a positive impact on the stock markets with First Citizens bank reaching valuations better than their prices from before the collapse. While this is good news for startups and businesses within the United States, it is still unclear how web3 will be impacted under First Citizens Bank. Fortunately, bitcoin has performed well during the situation and could mean better performances in 2023 compared to 2022.
