All deposits and loans will be sold to American family-owned bank, First Citizens
An announcement was made that First Citizens will acquire Silicon Valley Bank (SVB), late Sunday, after the Federal Deposit Insurance Corp (FDIC) had to step in to avoid larger financial ‘contagion’ from the SVB collapse.
The downfall of the start-up-centered bank resulted in the worst banking crisis since the 2008 global financial crisis. SVB’s long-dated bonds strategy left the bank vulnerable, and open to a bank run when customers rushed to withdraw funds. This deal signals the first weekend in several weeks that didn’t offer fresh banking woes, since the crisis began in March.
All deposits and loans of SVB will be sold to First Citizens, assets amounting to $110 billion, including $56 billion in deposits and $72 billion in loans. As part of the deal, FDIC will be given $500 million in equity rights of First Citizens’ stocks, and retain some $90 billion in securities.... Read More: i24