First Citizens Bank Buys Silicon Valley Bank – Economy

The loan book and deposits of the collapsed Silicon Valley Bank (SVB) in California are taken over by the First Citizens Bank & Trust. This was announced by the US deposit regulator FDIC on Monday. Other assets, primarily securities, remain under the control of the FDIC, it said.

The FDIC took over the SVB on March 10 and had already made an unsuccessful attempt to sell the institute. The day before the takeover, US crypto bank Silvergate Capital’s voluntary resolution had already sent shockwaves through parts of the financial sector. Other small financial institutions also stumbled, the Signature Bank collapsed completely.

Since then, the crisis has developed into a banking tremor that is putting pressure on the share prices of banks around the world. 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 in view of the turbulence in the banking sector.

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