The collapse of Silicon Valley Bank (SVB) in early March led to fears of a potential global financial crisis as other banks could face a similar situation amid high inflation and rising interest rates from the Federal Reserve.
SVB Customers rushed to withdraw their funds on March 9, a day after the bank announced it sold off bonds to fill up its funding hole, which caused widespread fears and panic.
The California Department of Financial Protection and Innovation, the state’s bank regulator, announced the forced closure of SVB on March 10, following the bank run a day earlier.
The Federal Deposit Insurance Corporation (FDIC) subsequently seized all of SVB’s assets.
The collapse of SVB is the largest failure of a U.S. financial institution since the 2008 financial crisis.
First Citizens Bank said it has agreed to acquire the deposits and loans of the collapsed SVB on March 27, including the purchase of the assets at a discount of $16.5 billion, providing $500 million worth of equity in First Citizens.
Here is a look at the key events leading to SVB’s collapse and subsequent acquisition by First Citizens Bank.