This caused the markets to stagger for days as bank stocks fell, some saying it hastened the crisis. Credit Suisse triggered investor reflexes and, in the opinion of many, launched a new banking crisis. Now the US regional banking drama Silicon Valley Bank (SVB) comes to the end. The bank, which primarily funded technology startups, will suffer the same fate as the regional Signature, which also went bankrupt and was acquired. This time the god of machines is a bank First citizenswhich in recent years has repeatedly acquired problematic banks.

First Citizens will take over all of SVB’s $119 billion in deposits and approximately $72 billion of its loan book and assets. It will now operate 17 SVB branches, leaving $90 billion of securities and other assets to the Federal Deposit Insurance Corporation (FDIC) , which estimates that the collapse of SVB will cost it $20 billion in losses. The FDIC took control of SVB on March 10 when large losses in its investment portfolio and its surprise decision to raise capital through share sales caused investors and depositors to freak out, leading to a free fall in its shares and massive withdrawals.

Since the FDIC put SVB up for auction, a number of regional banks and major investment firms, including Blackstone, Apollo, Carlyle, Sixth Street and HPS Investment Partners, have shown interest and reviewed its loan portfolio to consider submitting an offer. First Citizens’ interest in the takeover surprised some observers, who doubted its ability to take over the second-largest bank, which had gone bust and taken over by the FDIC. However, the fact is that First Citizens has a lot of experience in acquiring troubled banks that have failed.

First Citizens bills itself as the largest family bank in the US and has been in existence since 1898, when it was founded by the grandfather of current CEO Frank Holding, who took over in 2008. In recent years, especially since 2009. , Frank Holding has already overseen more than 20 takeovers of distressed banks in deals arranged by the FDIC. Last year, he paid $2 billion to buy CIT, which funds midsize businesses. He closed acquisitions of regional banks from Washington DC to Wisconsin and Pennsylvania. The SVB acquisition should now boost the size of First Citizens, which had just $100 billion in assets and nearly $90 billion in deposits at the end of last year and was the 36th largest US bank by assets. As for the market value of First Citizens, it was $8 billion as of Friday evening.

The collapse of the SVB will cost the Federal Deposit Insurance Corporation (FDIC) $20 billion in losses.

It was preceded last week by a similar agreement to acquire Signature Bank by New York Community Bank’s Flagstar. However, the agreement to acquire Signature provides for the FDIC to take over part of its $60 billion loan portfolio, while the collapse of this regional bank is estimated to cost the deposit insurance fund $2.5 billion.

The fall in SVB shares and the bankruptcy of Signature earlier this month raised concerns about the problems that regional US banks may be hiding in their portfolios and the risks they pose to the US financial system. SVB was the largest US bank to fail more than a decade after the global financial crisis. His collapse came just 48 hours after he announced he was looking to raise capital by selling shares. It should be noted that the Swiss authorities tried to link the collapse of Credit Suisse and its forced acquisition of UBS with the crisis of American regional banks. It is true that in between the SVB bankruptcy and the Credit Suisse crisis, many analysts emphasized that although it was embroiled in scandals and misguided investments, the Swiss bank was still viable, but the US regional bank crisis intensified. concerns of investors and drew their attention to every banking problem.