North Carolina-based First Citizens will acquire Silicon Valley Bank, which collapsed earlier this month, causing concern within the banking industry. FDIC had already taken steps to prevent a wider banking crisis by assuring depositors in Silicon Valley Bank and another failed U.S. bank that they could access all of their money. Customers of Silicon Valley Bank will become customers of First Citizens, with Silicon Valley Bank’s branches opening as First Citizens’ branches on Monday. Following the announcement, First Citizen shares surged 12.4%, while mid-sized San Francisco-based First Republic Bank’s increased by 24.3%. European shares also opened higher on Monday.

Leave a Reply

Your email address will not be published. Required fields are marked *