The first citizens of BancShares Inc. agreed to buy Silicon Valley Bank, which was confiscated by regulators after a massive outflow of deposits.

The Raleigh, North Carolina-based bank has entered into an agreement to purchase and assume all of SVB’s deposits and loans, according to a statement from the Federal Deposit Insurance Corporation.

According to Bloomberg, First Citizen is acquiring about $72 billion worth of SVB assets at a $16.5 billion discount. dollars, and the estimated cost of the SVB bankruptcy to the FDIC deposit insurance fund is about $20 billion, the US agency said.

“This is a remarkable deal in partnership with the FDIC and should instill confidence in the banking system,” Frank Holding Jr. said in a statement. Managing Director of the First Citizens company.

Recall that Valley National Bancorp and First Citizens BancShares claimed Silicon Valley Bank after its collapse.

Two regional banks have filed separate SVB applications with the Federal Deposit Insurance Corporation. until Friday evening, when the relevant deadline has expired.

The Silicon Valley Bank has become the largest US bank to fail in a decade.

Breathe in the markets

Seventeen former SVB chapters are now expected to open as First Citizen chapters. The deal gave markets a breather as it was the first weekend in weeks with no news of more bank failures, bailouts or bailouts to boost confidence in the banking system, Reuters reported.

Questions remain as the sudden surge in bank burdens has raised questions about whether major central banks will continue to aggressively raise rates to bring down inflation and whether tighter lending will harm the global economy.

In Europe, bank bonds are under pressure. Deutsche Bank’s five-year CDS hit its highest level since the end of 2018 on Friday, according to S&P Global Market Intelligence data.

The SBV deal came after weeks of searching for a bidder and after the FDIC requested separate bids for SVB Private and SVB. According to the US authorities, the FDIC has about $90 billion worth of securities left for sale.

With information: Bloomberg, Reuters, Moneyreview.gr