First Citizens Bank cements position as major player in US banking with Silicon Valley Bank takeover
First Citizens Bank cements ...
Subscribe to Newsletter

First Citizens Bank cements position as major player in US banking with Silicon Valley Bank takeover

27 March 2023
3096
2 min.
6
First Citizens Bank cements position as major player in US banking with Silicon Valley Bank takeover

Deal betyween banks

First Citizens Bank, shortly FCB, has recently made headlines with its announcement of the acquisition of Silicon Valley Bank's US operations, following the bank's collapse.

This deal, according to a statement from the Federal Deposit Insurance Corporation (FDIC), involves First Citizens acquiring assets worth $72 billion at a discounted price of $16.5 billion.

The move is seen as a significant expansion of First Citizens' asset portfolio, providing the bank with a much-needed boost in terms of growth and expansion. With its base in Raleigh, North Carolina, First Citizens has branded itself as the largest family-run bank in the US. The bank has previously acquired over 20 other banks since the 2008 financial crisis, including financial services firm CIT Group for $2 billion in January.

The acquisition will see First Citizens control all 17 former Silicon Valley Bank branches in California, and anyone who still had money deposited with SVB will see those funds automatically transferred over to First Citizens, as per the FDIC's statement. Customers will still have deposits worth up to $250,000 insured by the FDIC, as per normal limits.

While many investors are hoping that First Citizens' takeover of SVB will provide some much-needed stability for the embattled banking sector, rising borrowing costs and cratering asset valuations may cause further banking stress. Nonetheless, the early reaction to the takeover has been positive, with many US bank stocks surging in early-morning trading. In fact, embattled First Republic led all stocks with a 30% jump in premarket trading, while Frankfurt-listed Deutsche Bank climbed 3% Monday to erase most of its losses from the previous trading session.

Given the collapse of Silicon Valley Bank and the factors that fueled it, some observers are questioning whether First Citizens is big enough to take over the second-largest bank ever to collapse in the US. However, with its history of successful acquisitions and steady growth, First Citizens is well-positioned to handle the challenges that come with integrating SVB's operations into its own.

Overall, this acquisition marks an important milestone for FCB, as it expands its operations and solidifies its position as a leading player in the US banking sector.

Section:
Rating companies
Tesla
14 Mention
Instagram
14 Mention
Walt Disney Company
12 Mention
Netflix
11 Mention
JP Morgan Chase
10 Mention
Amazon
10 Mention
Ford Motor Company
10 Mention

NEW YORK NEWS

News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Population
8118312148
Died this year
18143054
Born this year
44635124