The Federal Deposit Insurance Corporation announced Monday that First Citizens Bank has decided to purchase Silicon Valley Bank’s deposits and loans.
The transaction involves $119 billion in deposits and $72 billion in assets. The Federal Deposit Insurance Corporation announced that “SVB’s 17 branches will open as First Citizens” on Monday. Adding that deposits will continue to be insured.
SVB, the 16th largest bank by assets in the United States and a major lender to startups since the 1980s. Collapsed after a sudden run on deposits, leading regulators to seize control.
Along with the FDIC, the US Treasury and Federal Reserve devised strategies to ensure that SVB customers could access their deposits. While the Fed introduced a new lending tool for banks. In an effort to avoid a repetition of SVB’s quick demise.
According to Federal Reserve data, First Citizens was the 30th biggest commercial bank in the United States in terms of assets at the end of 2022. Here are ten facts about one of the biggest banks in the United States.
First Citizens Bancshares, Inc. is a bank holding company headquartered in Raleigh, North Carolina, United States.
Its primary subsidiary, First Citizens Bank, is one of the largest banks in the United States.
Frank Holding, Junior serves as Chairman and CEO of First Citizens BancShares, Inc.
And its affiliate, First Citizens Bank & Trust Company.
The Silicon Valley Bank Collapse
Two weeks ago few people outside the tech industry had even heard of Silicon Valley Bank. The midsize California lender whose rapid implosion would end up shaking the foundations of the entire global financial system.
But then, on the morning of Friday, March 10, after clients withdrew $42 billion in the span of a single day, state and federal regulators swooped in to try to salvage what remained of SVB.
