Silicon Valley Bank bought by rival amid banking turmoil - latest updates
A buyer has been found for Silicon Valley Bank, the troubled US regional lender which sparked global turmoil in the banking sector following its sudden collapse earlier this month.
First Citizens has agreed to purchase all loans and deposits from the Californian lender in a deal which it is hoped will restore calm to financial markets.
SVB, a key lender to the tech industry since the 1980s, became the biggest US bank to fail since 2008 when regulators seized it after a sudden run on deposits.
Regulators created Silicon Valley Bridge Bank from SVB after the collapse, and that entity will be taken over by First Citizens from Monday.
First Citizens said it had agreed to purchase "substantially all loans and certain other assets, and assume all customer deposits and certain other liabilities of Silicon Valley Bridge Bank."
"The transaction is structured as a whole bank purchase with loss share coverage," it said in a statement.
It said the 17 former branches of SVB will open on Monday as "Silicon Valley Bank, a division of First Citizens Bank."
The US Federal Deposit Insurance Corporation (FDIC) said Sunday the transaction covers $119 billion in deposits and $72 billion in assets.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Most Discussed
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10