FDIC and Silicon Valley Bank

FDIC and Silicon Valley Bank | 60 minutes


First Citizens Bank to buy “all deposits and loans” of Silicon Valley Bank after The collapse of SVB earlier this month, The Federal Deposit Insurance Corporation announced late on Sunday.

The deal covers $119 billion in deposits and $72 billion in assets, and “17 SVB branches will open as first citizens” on Monday, the FDIC said.

SVB depositors “will automatically become First Citizens Bank depositors, and the FDIC will continue to insure the deposits, the agency said.

In addition, all those with loans from SCB should continue to make payments, including deposit payments, as usual; The terms of your loan will not change,” the FDIC said.

First Citizens, headquartered in Raleigh, North Carolina, said the deal will maintain its strong financial position and the combined company will continue to be strong with a diverse loan portfolio and deposit base. “A prudent approach to risk management will continue to protect customers and shareholders in all economic cycles and market conditions,” the statement said.

Santa Clara, Calif.-based SVB — the 16th-largest U.S. bank by assets and a key lender to the nation’s startups since the 1980s — collapsed after a sudden jump in deposits that prompted regulators to seize control and hit bank industry.

Along with the FDIC, the Treasury Department and the Federal Reserve developed plans to ensure SVB customers had access to their deposits, while the Fed introduced a new lending tool for banks to prevent a repeat of SVB’s imminent demise.


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