First Citizen Bank will take over America’s troubled Silicon Valley Bank

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New York : Many big banks are standing in the queue to buy the Silicon Valley Bank (SVB), which is one of the 16 big banks of America, which created an earthquake in the banking sector of the whole world. According to media reports, the Federal Deposit Insurance Corporation (FDIC) has said that North Carolina-based First Citizens Bank will buy the troubled Silicon Valley Bank (SVB). The failure of SVB had taken the entire banking industry by surprise and there was an atmosphere of concern about the banking sector across the world. This deal has happened at a time when investors’ confidence has been shaken. However, now they can heave a sigh of relief.

SVB branch will open as first citizen branch

According to media reports, the FDIC and other regulators took major steps to protect depositors and prevent the financial crisis from deepening. In this connection, it was guaranteed that the customers of SVB and another bank that had failed in America would be able to access their entire funds. Now the customers of SVB have themselves become the customers of First Citizen. 17 branches of SVB will now open as First Citizen branches only.

Signature Bank also closed

Two days after Silicon Valley Bank failed on March 10, New York’s Signature Bank also went under. New York Community Bank had agreed to buy a majority stake in Signature Bank, but the search for a buyer for SVB continued. The FDIC said in a statement that the sale also included the sale of all of SVB’s deposits and loans.

Securities to remain in receivership of the FDIC

The report states that securities and other assets worth about $90 billion will remain in receivership for disposal by the FDIC. In addition, the FDIC received equity shares of First Citizens Bank in Raleigh, North Carolina, with a potential value of approximately $500 million.

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