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First Citizens to Buy SVB After Biggest Failure Since 2008

  • Deal includes $56 billion in deposits, $72 billion in loans
  • FDIC estimates the cost of SVB’s failure will be $20 billion
Bloomberg business news
WATCH: First Citizens Bank agreed to buy all deposits and loans of Silicon Valley Bank. Russell Ward reports.Source: Bloomberg
Updated on

First Citizens BancShares Inc. agreed to buy Silicon Valley Bank after a run on deposits wiped out the company in the biggest US bank failure in more than a decade.

The deal to settle SVB’s fate could help tamp down some of the turmoil that has engulfed the financial world, and shares of regional banks rallied on the news, with First Citizens up 44%. The Federal Deposit Insurance Corp. seized SVB earlier this month amid concern that bank runs could spread.