The Federal Deposit Insurance Corporation (FDIC) has said that North Carolina-based First Citizens Bank will buy the troubled Silicon Valley Bank (SVB).
The failure of the SVB had taken the entire banking industry by surprise and created an atmosphere of concern about the banking sector across the globe. The deal has come at a time when investor confidence has been shaken. However, now they can heave a sigh of relief.
The FDIC and other regulators took major steps to protect depositors and prevent the financial crisis from worsening. In this sequence, it was guaranteed that the customers of SVB and another failed US bank would be able to access their entire funds.
Now the customers of SVB have themselves become the customers of First Citizen. 17 branches of SVB will now open only as First Citizen branches.
New York’s Signature Bank also went under two days after the Silicon Valley bank failed on March 10. New York Community Bank had agreed to buy a majority stake in Signature Bank, but the search for a buyer for SVB was ongoing.
The sale also includes the sale of all of SVB’s deposits and loans, the FDIC said in the statement.
