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Bankrupt bank SVB acquired by First Citizens

2023-03-27T06:36:15.910Z


Silicon Valley Bank went bankrupt in early March. In total, the operation covers $191 billion in assets.


The American bank First Citizens will buy "

all the deposits and loans

" of Silicon Valley Bank (SVB), which went bankrupt in early March, announced the night of Sunday to Monday the American banking authority FDIC.

The transaction involves $72 billion in assets, the FDIC said, adding that "

all 17 SVB branches will open as First Citizens

" on Monday.

The bankruptcy of SVB triggered a wave of panic in the banking sector in the United States, with repercussions even on the European markets.

Close to tech circles, SVB suddenly found itself in difficulty after the announcement of the sale of 21 billion dollars in financial securities, with a loss of 1.8 billion at the end of it, and its intention to raise capital. capital.

The bank having to face massive withdrawals, the authorities estimated on March 10 that it was insolvent and took control of its assets, thus recording the largest bank failure in the United States since 2008. It then had 119 billion dollars of deposits, details the FDIC.

The new entity reopened on March 13 as Silicon Valley Bank Bridge with a boss appointed to manage day-to-day business until its fate is decided.

All of that entity's loans and deposits will now be managed by First Citizens, while the FDIC will keep some $90 billion in other assets.

Source: lefigaro

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