Saudi Press

Saudi Arabia and the world
Saturday, Aug 02, 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

Saudi Press
0:00
0:00
Close
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Russia Formally Recognizes Taliban Government in Afghanistan
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Emirates Airline Expands Market Share with New $20 Million Campaign
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
Iran's Parliament Votes to Suspend Cooperation with Nuclear Watchdog
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Oman Set to Introduce Personal Income Tax, First in Gulf
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
×