The American financial institution First Citizens Bank takes over the insolvent Silicon Valley Bank (SVB). As the federal deposit insurance fund FDIC announced Monday night, the bank is buying all of the closed bank’s deposits and loans. The transaction includes deposits of $119 billion (111 billion euros) and an additional $72 billion in assets.
The 17 branches of the SVB will open on Monday under the name First Citizens and customers of the SVB will ‘automatically’ become customers of the new bank. The FDIC remains responsible for safeguarding deposits.
Largest US bank failure since the 2008 financial crisis
The SVB was the 16th largest bank in the United States by assets and a major financier, especially for start-ups. It was shut down by authorities after a bill rush in early March. The bankruptcy of the SVB is the largest bank failure in the US since the financial crisis of 2008 and caused a lot of unrest in the banking sector and on the stock markets – including in Europe.
Source: Krone
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