Buckle up, folks! The biggest bank collapse in the US since 2008 is making headlines once again.
This time, it’s Silicon Valley Bank that’s caught up in the mix, and it’s being acquired by First Citizens Bank.
The news has sent shockwaves through the financial industry, leaving many wondering what this means for both banks, their customers, and their employees.
In today’s blog post, we’ll dive into the details of this major acquisition and explore its potential impact on the future of banking.
Get ready to learn everything you need to know about this groundbreaking development!
Silicon Valley Bank to be Acquired by First Citizens
The largest US bank to collapse since the Great Depression has been revealed to be Silicon Valley Bank, with First Citizens Private Banking being announced as the new owner.
The deal is set to be completed in the coming weeks, with First Citizens Private Banking taking over all operations of the bank.
This will mark the end of a turbulent year for Silicon Valley Bank, which was subject to various financial stress tests and investigations.
The bank had been struggling for some time before it finally went into receivership earlier this year.
In January, it was revealed that $2 billion had disappeared from its accounts over a two-year period, leading to widespread concern among customers and investors.
Investigations were launched into the bank’s accounting practices, with regulators stating that “the findings exposed serious failures by management.
The takeover by First Citizens Private Banking is likely to be seen as a positive move by investors – the bank had been heavily indebted and was facing significant financial challenges.
The deal will see First Citizens Private Banking take on $1.5 billion in debt, with plans to restore services and sell off assets in order to shore up finances. CEO Rick Rogers commented on the acquisition
We are excited about this opportunity because we know that Silicon Valley Bank is strong and well positioned for future growth.
What Happened at Silicon Valley Bank?
On November 15, 2018, the largest US bank collapse since the Great Depression occurred when Silicon Valley Bank failed.
The failure was the result of a series of bad loans and investments that led to a $8.5 billion loss. First Citizens Bank, which is based in Richmond, Virginia, announced that it was acquiring Silicon Valley Bank.
The deal is worth $1.9 billion dollars and will be finalized in early 2019.
The acquisition comes at a time when the banking industry is facing increased scrutiny from regulators. Silicon Valley Bank was one of many banks that were caught up in the fallout from the 2007-2008 financial crisis.
The acquisition will give First Citizens access to a large customer base in California and Nevada, as well as an extensive network of branches and ATMs across the United States.
First Citizens has been buying smaller banks for several years now, and this is its biggest acquisition yet. The company hopes to use the acquisition to expand its reach into new markets and boost its profits.
On September 27, 2018, Silicon Valley Bank announced that it would be acquired by First Citizens Financial Group, the largest US bank in terms of assets. The acquisition is expected to be completed in early 2019.
The announcement comes just two months after Silicon Valley Bank was fined $53 million for deceptive marketing practices and failing to maintain required capital levels.
The fine was the largest ever levied by the Federal Reserve against a US bank.The takeover by First Citizens is likely to result in some changes at Silicon Valley Bank.
For example, the company’s CEO, Cameron McInnis, is expected to step down and be replaced by First Citizens’ current CEO, Stephen Clark. McInnis will stay on as chairman of the board.
The acquisition by First Citizens follows a number of other recent bank failures in the US. In March 2018, Community Trust Bank closed its doors after failing to meet capital requirements.
In June 2018, USA Bancorp became the latest large bank to go under when it filed for Chapter 11 bankruptcy protection.
What this Means for the Banking Industry
The race is on in the banking industry as Silicon Valley Bank prepares to be acquired by First Citizens Bank. The acquisition will be one of the largest since the US bank crisis.
Silicon Valley Bank was founded in Palo Alto, California in 2009 and has since grown to be one of the larger banks in the state. The bank has over $2 billion in assets and employs over 300 people.
First Citizens Bank is based out of Raleigh, North Carolina, and has over $20 billion in assets. The bank currently operates more than 1,000 branches across the country.
The Future of Silicon Valley Bank
The future of Silicon Valley Bank is now in the hands of First Citizens Bank. The bank has announced that it will be acquiring the troubled bank, marking the largest US bank collapse since 2008.
The acquisition is said to be worth $3 billion and is expected to close by the end of the year silicon valley bank to be acquired by first citizens, largest US bank collapse since 2008