Silicon Valley Bank will be purchased by First Citizens Bank. First Citizens, will purchase  the collapsed Silicon Valley Bank,

Silicon Valley Bank (SVB) deposits and sold to FIDC

First-Citizens Bank and Trust Co. will receive the sale of all of SVB’s deposits and debts. the FDIC said in its statement late Sunday. Customers of SVB will immediately become customers of Raleigh-based First Citizens. On Monday, the 17 old SVB locations will reopen as First Citizens locations., The FDIC and other regulators acted to safeguard depositors in response to Silicon Valley Bank’s collapse on March 1. Averting further financial unrest.

The Santa Clara, California-based bank collapsed as a result of depositors’ hasty withdrawals of funds. In response to concerns about the bank’s stability. After Washington Mutual’s bankruptcy in 2008, it was the second-biggest failure of a bank in American history.

Silicon Valley Bank depositors were guarded by the US government.

In the third-largest bank failure in American history, authorities grabbed New York-based Signature Bank on March 12. Depositors at SVB were able to retrieve their money in both instances because the government consented to cover deposits. Even those that went above the federally insured cap of $250,000.

Investors fretted that the mid-sized C in San Francisco, which has a comparable clientele to SVB.  Appears to be experiencing a similar crisis, and might also fail. This prompted a $30 billion rescue package to be revealed by 11 of the largest banks in the nation.

First Citizens’ purchase of SVB results in the FDIC receiving $500 million worth of stock in the latter. According to the FDIC, First Citizens and the FDIC will split losses and possible claims on loans covered by a loss-share pact.