The bank was placed under government control on March 10, 2023.
(Photo: AP)
Washington After its collapse, the American Silicon Valley Bank (SVB) is taken over by the First Citizens Bank. This was announced by the US deposit insurance FDIC on Monday.
First Citizens Bank will acquire approximately $72 billion in assets in the form of deposits and loans. Other assets, primarily securities, remain under the control of the FDIC, it was further disclosed.
The fund expects itself to lose about $20 billion from the transaction. The exact sum will be known as soon as the bankruptcy administration has ended. The 17 branches of the Silicon Valley Bank should open as first citizens on Monday.
On March 10, the money house SVB, which specializes in start-up financing, came under state control. The day before, US crypto bank Silvergate Capital’s voluntary resolution had 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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