"US First Citizens Near Acquisition of SVB"

Bloomberg "Negotiations May Be Reached as Early as Today"

U.S. First Citizens BancShares is reportedly set to acquire Silicon Valley Bank (SVB), which went bankrupt this month due to a bank run involving massive deposit withdrawals.

[Image source=Reuters Yonhap News]

On the 26th (local time), Bloomberg News cited anonymous sources reporting that First Citizens could finalize negotiations with the U.S. Federal Deposit Insurance Corporation (FDIC) to acquire SVB on the same day.

The source stated that no final decision has been made yet and that negotiations could still fall through. Both the FDIC and First Citizens, parties involved in the negotiations, declined Bloomberg's requests for comment regarding the sale of SVB.

Earlier, the FDIC seized SVB, which had been under crisis rumors since the 9th, and had been seeking a buyer for about two weeks. First Citizens BancShares and Valley National Bancorp competed to acquire SVB. First Citizens BancShares, headquartered in North Carolina, has a market value of $8.4 billion, higher than Valley National Bancorp's $4.7 billion.

SVB, whose sale is imminent, is the largest U.S. bank to fail in the past decade. It collapsed within 48 hours after announcing plans to raise capital amid a wave of corporate deposit withdrawals. SVB suffered significant losses by selling bonds that had declined in value due to interest rate hikes by the U.S. Federal Reserve (Fed), and ultimately could not withstand the bank run, leading to its bankruptcy.

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