The US bank that acquired Silicon Valley Bank (SVB) announced 500 layoffs at the institution, which went bankrupt after a run on deposits in March.
First Citizens Bank, based in Raleigh, the capital of the southeastern US state of North Carolina, said Wednesday it would lay off about 3% of SVB’s workforce.
First Citizens Bank chief executive Frank Holding said the change would affect a limited number of SVB executives, adding that neither customer service employees nor India-based staff would be affected.
The SVB was affected by the monetary policy of the United States Federal Reserve (Fed), whose consecutive interest rate hikes reduced the value of the Treasury bond reserves held by the bank.
The final blow came in March, after a run on deposits by many of SVB’s clients, mostly tech workers and companies backed by venture capital funds.
The SVB was the 16th largest North American bank and represented the second largest bank failure in the history of the United States, having been followed by the collapse of other financial institutions, such as Signature Bank, also in March, and First Republic Bank, this month.
Source: TSF
