Fallen Silicon Valley Bank gets way out

- Advertisement -spot_imgspot_img
Fallen Silicon Valley Bank gets way out

The collapsed Silicon Valley Bank (SVB) has been given a way out of the malaise that hit the bank. The First Citizens Bank takes over all credits and loans from government body FDIC, which intervened when SVB went bankrupt. The Federal Deposit Insurance Corporation is the US national institution that guarantees bank deposits.

The acquisition is worth more than $ 55 billion, while First Citizens will receive more than $ 72 billion in assets. Due to the bank’s malaise, the FDIC has offered a rebate of $16.5 billion. In addition, the FDIC still holds more than $ 90 billion in assets.

Customers of First Citizens need not immediately fear that the takeover is risky for First Citizens. In the event of any losses on loans that are still outstanding from SVB, the FDIC will share in the damage. In addition, the government agency also received up to $500 million in equity from First Citizens.

Reopen offices

Due to the takeover, the bank branches of SVB will reopen on Monday. However, under the name of the acquiring party. FDIC estimates that the total rescue of that bank has cost about $ 20 billion.

First Citizens Bank claims to be a family business. With total assets of USD 109 billion and bank balances of about USD 90 billion, the bank is a lot smaller than SVB. Even after the bank run that led to its collapse, that bank still managed $119 billion from customers.

The collapsed Silicon Valley Bank (SVB) has been given a way out of the malaise that hit the bank. The First Citizens Bank takes over all credits and loans from government body FDIC, which intervened when SVB went bankrupt. (ANP / AFP)

- Advertisement -spot_imgspot_img
Latest news
- Advertisement -spot_img
Related news
- Advertisement -spot_img