HomeEconomyUS bank First Citizens buys SVB loans and deposits

US bank First Citizens buys SVB loans and deposits

The deposits and loans of the Californian bank SVB, which went bankrupt about two weeks ago and caused a shock in the financial markets, will be bought by a colleague, First Citizens.

US bank First Citizens will buy “all deposits and loans” from Silicon Valley Bank, which failed in early March, the US banking authority FDIC announced overnight.

The transaction covers $119 billion in deposits and $72 billion in assets, the FDIC said, adding that “SVB’s 17 branches will open as First Citizens” on Monday.

The fall of SVB, the 16th largest bank in the US, was the biggest bank failure since the 2008 crisis. The institution specializing in financing technology companies failed to raise enough capital to meet the demands of its clients who wanted get your money back.

Since its fall, the specter of a banking crisis has worried the markets with Credit Suisse, which collapsed on the stock market before being bought by UBS, while in the United States Signature Bank and First Republic, the 14th largest US bank, have also worried in recent days. .

Author: obstetrics with AFP
Source: BFM TV

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