London Daily

Focus on the big picture.
Sunday, Jul 06, 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
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
Poland Implements Border Checks Amid Growing Migration Tensions
Political Dispute Escalates Between Trump and Musk
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
US Senate Votes to Remove AI Regulation Moratorium from Domestic Policy Bill
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
Jury Deliberations in Diddy Trial Yield Partial Verdict in Serious Criminal Charges
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
King Charles Plans Significant Role for Prince Harry in Coronation
Two Chinese Nationals Arrested for Espionage Activities Against U.S. Navy
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
×