It looks like US Government will pay out $20bn to fund the discounted value.

First Citizens Bank specialize in such discounted takeovers.

First Citizens Bank will buy much of Silicon Valley Bank, US regulators said, as they estimated the lender’s collapse would lead to $20bn of losses for a deposit insurance fund paid for by banks.

The Raleigh, North Carolina-based lender will take on all $119bn of deposits at SVB, the once high-flying lender to tech start-ups and their investors that failed this month. First Citizens will also take over SVB’s loans and operate its 17 branches, the Federal Deposit Insurance Corporation said on Sunday evening.

First Citizens will buy about $72bn of SVB’s assets at a discount, leaving about $90bn of securities and other assets with the FDIC, which is acting as its receiver

Bloomberg reporting is earlier on Sunday and has not confirmed nor has FDIC.