bankrupt Silicon Valley Bank acquired by First Citizens

Its bankruptcy, at the beginning of March, had triggered a wind of panic in the banking sector in the United States, with repercussions even on the European markets. The American bank First Citizens will buy “all deposits and loans” of Silicon Valley Bank (SVB), announced the American banking authority FDIC, on the night of Sunday March 26 to Monday March 27. The transaction concerns 72 billion dollars of assets, announced the banking authority, specifying that “all 17 SVB branches will open as First Citizens” Monday.

Close to the tech community, Silicon Valley Bank suddenly found itself in difficulty after the announcement of the sale of 21 billion dollars of financial securities – with a loss of 1.8 billion at the key – and its intention to raise capital. Faced with massive withdrawals from its customers, the authorities deemed on March 10 that it was insolvent and took control of its assets. They thus recorded the largest bank failure in the United States since 2008.

The bank then had $119 billion in 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.