Deal To Buy Silicon Valley Bank Calms Bank Fears, For Now

By STAN CHOE (AP Business Writer) NEW YORK (AP) — First Citizens Bank is buying much of Silicon Valley Bank, the tech-focused financial institution whose failure this month set off a chain reaction that helped rattle faith in banks around the world. The Federal Deposit Insurance Corp. and other regulators had already taken extraordinary steps to head off a wider crisis by guaranteeing all depositors in SVB and another failed institution, Signature Bank, could get their money, even if they had more than the $250,000 limit insured by the FDIC. The First Citizens deal announced late Sunday, at least initially, seemed to achieve what regulators have sought: a shoring up of trust in other regional banks across the country. Stock prices strengthened for First Republic, PacWest Bancorp.

 

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