[2nd Report] US First Citizens Agrees to Acquire SVB

Bloomberg reported on the 27th (local time) that the US-based First Citizens Bankshares will acquire Silicon Valley Bank (SVB), which went bankrupt this month due to a bank run (massive withdrawal of deposits).

[Image source=Reuters Yonhap News]

The US Federal Deposit Insurance Corporation (FDIC) issued a statement on the same day announcing that First Citizens Bankshares, based in North Carolina, has agreed to acquire all deposits and loans of SVB.

Earlier, the FDIC seized SVB, which had been under crisis rumors since the 9th, and sought a buyer for about two weeks. First Citizens Bankshares and Valley National Bancorp competed to acquire SVB, with First Citizens Bankshares ultimately securing the acquisition. First Citizens Bankshares has a market value of $8.4 billion, higher than Valley National Bancorp's $4.7 billion.

SVB, which is being acquired by First Citizens Bankshares after about 40 years since its establishment, is the largest US bank to fail in the past decade. The bank collapsed just 48 hours after announcing plans to raise capital amid a series of corporate deposit withdrawals. SVB suffered significant losses by selling bonds that had declined in value due to interest rate hikes by the US Federal Reserve (Fed), and ultimately went bankrupt after failing to withstand the bank run.