London Daily

Focus on the big picture.
Friday, May 09, 2025

Banking stocks up as Silicon Valley Bank acquired by First Citizen Bank

Banking stocks up as Silicon Valley Bank acquired by First Citizen Bank

The lender's failure brought about the worst banking crisis since the 2008 financial crash and was the second largest bank collapse in US history.
A buyer has been found for the collapsed Silicon Valley Bank (SVB), the banking failure that heralded the financial unrest still being felt across financial markets.

First Citizen Bank, self-described as one of America's largest family-controlled banks, has bought SVB from US regulator the Federal Deposit Insurance Corporation (FDIC), which took over the lender earlier this month as depositors raced to withdraw money.

The sale led to shares in European lenders mounting a partial recovery on Monday morning, with an index of Europe's top banks rising 1.4% by 9am, after some major losses last week.

The UK arm of SVB was bought by HSBC in the days following the collapse.

All of Silicon Valley Bank's deposits, worth $119bn, and all loans are being taken over by First Citizen Bank, which will open 17 former SVB branches as First Citizen Banks on Monday. Customers of SVB are automatically First Citizen Bank customers as a result of the purchase.

About $72bn of SVB assets are being bought at a discount of $16.5bn (£13.49bn) and approximately $90bn (£73.6bn) are being left with the FDIC.

But the deposit insurance fund - paid into by banks in case of such a scenario - is down by $20bn (£16.34bn), the FDIC said.

The FDIC is a US state corporation providing deposit insurance to customers in US commercial and savings banks.

Once the bank of choice for tech companies and start ups, SVB was taken over by regulators after a bank run began.

Depositors and investors took fright when SVB's share price plummeted. The usually stable bonds held by SVB as security lost value as interest rates rose and attempts to sell shares to raise funds failed, leaving the bank insolvent.

It was the second largest bank failure in US history and set off the worst banking crisis since the 2008 financial crash.

The turmoil impacted Switzerland's second largest lender, Credit Suisse, which was forcibly bought by its longstanding rival UBS.

The largest shareholder in Credit Suisse, Saudi National Bank, said it would not invest further in the Swiss lender if needed, which sparked the latest crisis and resulted in the takeover.

On Monday morning, the chair of Saudi National Bank who made the comments resigned "due to personal reasons".

On Friday, Germany's largest bank became the focus in a wave of selling across banking and wider financial stocks.

Shares in Deutsche Bank fell more than 14% at one point during a volatile day of trading Europe-wide.
Newsletter

Related Articles

0:00
0:00
Close
Historic Papal Conclave Set to Commence in Rome
Huge Copper, Gold, and Silver Discovery in Argentina and Chile — But the Profits Go Abroad
Prince Harry is pleading for reconciliation — but the royals are just as sick of his victimhood as everyone else
The Road to Freedom: She Protested Putin, Escaped House Arrest, and Survived a 2,800-Kilometer Journey
OpenAI's Flip-Flop: No Longer Going Commercial, Back to Nonprofit, After Musk Lawsuit and Backlash
“Trump Supporter” Aims to Bring a MAGA-Style Shift to Romania
First From China: Zhao Xintong Wins the Snooker World Championship
Nvidia Faces Billion-Dollar Losses – Warns: China Is on Its Way to Becoming an AI Superpower
Trump Rules Out Third Term, Names JD Vance and Marco Rubio as Potential Successors
Mexico Says ‘No’ to U.S. Troops: President Sheinbaum Rejects Trump’s Offer to Fight Cartels
Nigel Farage’s Reform UK Storms the Map, Wrecking the Two-Party Monopoly
DOGE: Reimagining Government Operations with AI
Common Sense Returns to Britain's Legal System: UK Supreme Court Declares a Woman Is… a Woman
Beijing Says U.S. Is ‘Reaching Out’ for Tariff Talks Amid Soaring Trade Tensions
U.K. Court Rejects Prince Harry’s Final Appeal Over Police Security
Prince Harry’s Heartfelt Outburst Rocks the Royal Family
Trump Shares AI-Generated Image of Himself as… Pope, Prompting Outrage Reaction
Transgender Swimmer Secures Five Gold Medals at U.S. Masters Championship
Prince Harry: “I Want Reconciliation with My Family”
Germany's Alternative für Deutschland (AfD) party has now been officially labeled “right-wing extremist” by the federal office for the so-called “protection of the constitution.”
Amazon Launches Satellite Internet Service Amidst Competition with SpaceX
Transformative Changes in Women's Wrestling: The Rise of WWE Superstars
The Rush to the White Gold: Global Investment Surge in Natural Hydrogen Exploration
This is a day in Spain without electricity and internet
Reform UK Surprises in British Elections, Challenging Traditional Two-Party System
180-Year-Old Christian University in South Carolina Announces Closure Due to Unmet $6 Million Fundraising Goal
Brazilian Woman Jailed for Fourteen Years for Writing “You Lost, Idiot” on Statue During Protest
Trump Administration Removes National Security Adviser Mike Waltz Amid Signal Chat Controversy
Dutch Politician Eva Vlaardingerbroek Receives Spyware Threat Alert from Apple
Paramount Board Considers Settlement in Trump’s $20 Billion Lawsuit Over "60 Minutes" Interview
U.S. Economy Shrink in Trump’s First Quarter as Tariff Policy Raises Questions
Deadline Looms for RTS Meter Replacement: Hundreds of Thousands at Risk of Heating Disruption
Sweden Grapples with Deadly Gun Violence: Suspect Arrested After Three Young Men Killed in Uppsala Hair Salon
Walz Reveals Why Harris Chose Him as Her Running Mate and Reflects on Democratic Losses
Spain Restores Power After Unprecedented Nationwide Blackout
Carney Secures Liberal Mandate in Canada’s Federal Election
Death Penalty Sought as Luigi Manion Pleads Not Guilty in CEO Murder Case
President Trump contacts Jeff Bezos after reports of Amazon considering listing tariff surcharges; company clarifies no such plan for main platform
Spain and Portugal Recover from Massive Blackout
Liverpool Clinches Record-Equalling 20th English League Title Under Arne Slot
Singapore Politicians Warn Against Foreign Interference in Election
Driver Ploughs into Vancouver Festival Crowd, Killing Nine
Depression, Fear of Defamation, and a Tragic End: New Details on Virginia Giuffre’s Suicide
“Sharia for UK, Allah Akbar!”
Massive Explosion at Iran's Bandar Abbas Port Linked to Suspicious Chemical Shipments
Incident Reflection: A Harsh Reality Check
Pakistani migrants to Danish man: “ “We have 5 children while you have 1 or 2. In 10 years, there will be more Pakistanis than Danes here.“
Clashes Erupt in London as Tensions Rise Between Indian and Pakistani Communities
Specialized anti-drone weapons deployed among security personnel Ahead of Papal Funeral
How do you fix this culture?
×