Silicon Valley Bank (SVBassets )’s and loans are being purchased by rival First Citizens BancShares.
The failure of SVB earlier this month sparked concerns about the stability of other lenders, causing bank shares to plummet around the world.
Concerns about the strength of Swiss banking giant Credit Suisse prompted a hasty takeover by rival UBS in Europe.
Markets have remained tense, despite the fact that bank stocks opened higher on Monday.
Deutsche Bank shares fell 14% at one point on Friday before recovering some ground. They were up about 3% when trading began on Monday.
After a run on the bank, US regulators seized SVB earlier this month, and its failure was quickly followed by the failure of another US bank, Signature Bank.
The failures of the two were the largest bank failures in the United States since the 2008 financial crisis.
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According to the SVB takeover agreement announced by the US Federal Deposit Insurance Corporation (FDIC), all 17 former SVB branches will reopen on Monday under the First Citizens brand.
Customers of SVB should continue to use their current branch until they receive notification from First Citizens Bank that their account has been fully transferred over.
First Citizens, headquartered in Raleigh, North Carolina, bills itself as “America’s largest family-controlled bank.” In recent years, it has been one of the largest buyers of troubled banks.
It purchased approximately $72 billion in SVB assets and loans at a $16.5 billion discount. The FDIC will continue to hold approximately $90 billion in SVB assets.
The FDIC estimated that SVB’s failure would cost its deposit insurance fund approximately $20 billion.
SVB’s UK arm was purchased by HSBC earlier this month for £1.
The threat of rising interest rates
