IT WILL KILL BITCOIN | FIRST CITIZENS BANK

IT WILL KILL BITCOIN | FIRST CITIZENS BANK
First Citizens BancShares has announced that it will acquire the deposits and loans of bankrupt Silicon Valley Bank, closing one chapter in the trust crisis that has affected global financial markets.
Under the deal, the First-Citizens Bank & Trust Company division will take on SVB assets worth $110 billion, deposits worth $56 billion, and loans worth $72 billion.

The Federal Deposit Insurance Corporation (FDIC), which took control of SVB earlier this month, said that it has received rights to an increase in the value of First Citizens BancShares stock up to $500 million as part of the deal.

First Citizens will also receive a credit line from the FDIC for conditional liquidity purposes and will have an agreement with the regulatory agency to share some losses on commercial loans to provide additional protection against potential credit losses.
Analysts say that this move has been positive for financial stability and the venture capital industry, but only up to a certain point.

"I think the acquisition by First Citizens Bank of SVB's loan portfolio and deposits does little to solve the number one problem that the US banking system is currently facing: deposits are leaving small banks for larger banks or money market funds," said Redmond Wong of Saxo Markets.

Silicon Valley Bank became the largest bank to fail after the 2008 financial crisis, when California regulators closed the bank on March 10, triggering massive market disruptions and increased stress in the banking sector worldwide.

Silicon Valley Bank was the 16th largest creditor in the US at the end of last year, with assets of around $209 billion.
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