The end of a long ordeal for SVB. The American bank First Citizens will buy “all the deposits and loans” of Silicon Valley Bank (SVB), which went bankrupt in early March, announced the night of Sunday to Monday, the American banking authority FDIC. The transaction involves $72 billion in assets, the FDIC said, noting that “all 17 SVB branches will open as First Citizens” on Monday.
The bankruptcy of the SVB triggered a wave of panic in the banking sector in the United States, with repercussions even on the European markets. Close to tech circles, the SVB 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.
The bank having to face massive withdrawals, the authorities deemed on March 10 that it was insolvent and took control of its assets, thus recording the largest bank failure in the United States since 2008. It had then 119 billion dollars of 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 pending a decision on its fate. 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.
