Bank that was the 'flare' of the crisis in the US was sold

The ‘flagship’ bank of the crisis in the US has been sold Silicon Valley Bank, which brought the banking crisis in the US to the agenda of global markets, has been transferred to First Citizens Bank. The final decision regarding Silicon Valley Bank, which has also affected global markets with the crisis it experienced in the US, has been announced. According to the statement made by the US regulatory agency Federal Deposit Insurance Corporation (FDIC), First Citizens Bank has agreed to take over all deposits and loans of the SVB group. As of March 10, Silicon Valley Bridge Bank had approximately $167 billion in assets and $119 billion in total deposits. The agreement in question includes the purchase of $72 billion in assets at a discount of $16.5 billion. Approximately $90 billion in securities and other assets will remain in the liquidation section of the FDIC. The FDIC estimates that the crisis experienced at the bank will create a cost of approximately $20 billion for the institution’s deposit insurance fund. A step to buy time for First Republic A new move has been made in the US to buy time for another bank in crisis. According to Bloomberg, U.S. authorities are considering extending the emergency credit facility provided by the Fed to banks, which would give First Republic Bank time to reach a deal that would strengthen its balance sheet. However, sources said officials believe First Republic, which has been in the spotlight after the collapses of Silicon Valley Bank and Signature Bank, is stable enough to continue its operations without emergency intervention and is not at risk of a deposit outflow. First Republic shares have lost 90 percent of their value since the beginning of the month. Meanwhile, Fed Vice Chairman for Supervision Michael Barr, Federal Deposit Insurance Corporation (FDIC) Chairman Martin Gruenberg and U.S. Treasury Undersecretary Nellie Liang will testify to the U.S. Senate Banking Committee on Tuesday and the House Financial Services Committee on Wednesday on bank failures.