First Citizens acquires Silicon Valley Bank

Silicon Valley Bank

The failure of Silicon Valley Bank would have caused a $20 billion damage to a government-run insurance fund, but US authorities announced on Monday that they would support a plan for regional lender First Citizens BancShares to purchase the failing institution.

The agreement comes after Silicon Valley Bank was taken over by the Federal Deposit Insurance Corporation (FDIC) on March 10 as a result of a bank run that also brought down Signature Bank and destroyed more than half the market value of several other US regional lenders.