The American bank First Citizens will buy “all deposits and loans” from the Silicon Valley Bank (SVB), which went bankrupt at the beginning of March, the American banking regulator FDIC announced on Sunday night.
The transaction involves $72 billion in assets, the FDIC said, adding that “all 17 SVB stores will open Monday as First Citizens.”
The bankruptcy of the SVB triggered a wave of panic in the US banking sector, which also had an impact on the European markets.
Close to tech circles, SVB suddenly found itself in trouble after announcing a $21 billion sale of financial stocks with a $1.8 billion loss as key and its intent to raise capital.
The bank, which was facing massive withdrawals, on March 10 authorities estimated it was insolvent and took control of its assets, causing it to record the largest banking collapse in the United States since 2008.
She had $119 billion in deposits at the time, according to the FDIC.
The new entity reopened as the Silicon Valley Bank Bridge on March 13, with a boss appointed to run day-to-day operations until its fate is decided.
All of this company’s loans and deposits will now be managed by First Citizens, while the FDIC will retain approximately $90 billion in other assets.