Status: 03/27/2023 09:22 a.m
The US deposit insurance has found a buyer for the collapsed Silicon Valley Bank. The US institute First Citizens buys a large part of the assets.
The US bank First Citizens BancShares takes over large parts of the collapsed Silicon Valley Bank (SVB). The acquisition includes buying about $72 billion of SVB’s assets at a $16.5 billion discount, the US deposit insurance fund, the FDIC, said. Assets consist primarily of deposits and loans. Other assets, primarily securities, will remain with the FDIC for the time being.
The 17 branches of the SVB are already scheduled to open under the new name today. The fund expects itself to lose about $20 billion from the transaction. The exact amount will be known when the administration of the bankruptcy has ended.
Bank quake continues
The FDIC had taken over the money house specializing in start-up financing after a failed emergency capital increase on March 10 and had already made an unsuccessful attempt to sell the institute.
The problems at some US regional institutes had also triggered a bank earthquake in Europe. The escalation led to an emergency sale by Credit Suisse to UBS. This was followed by another sell-off in European financial stocks last Friday. In addition to many top European politicians, US President Joe Biden also tried to ease the situation at the weekend.