SVB Deposits & Loans Transferred – Now What?

As the receiver of Silicon Valley Bank (SVB), the Federal Deposit Insurance Corporation (FDIC) is charged with managing SVB's assets to preserve their value and to dispose of them as quickly as possible, consistent with the objective of maximizing the net return on those assets. Now that the FDIC has announced it has entered into a purchase and assumption transaction for all deposits and loans of the interim Silicon Valley Bridge Bank by First–Citizens Bank & Trust Company, Raleigh, North Carolina (First Citizens), borrowers and depositors will have opportunities to alter their new relationships with First Citizens or seek new financial partners. Opportunities also could exist for non-bank entities to purchase some of First Citizens' newly acquired loans.