The turmoil that drove Silicon Valley Bank and Signature Bank out of business, rocking the wider banking sector, has analysts bracing for the next possible crisis: the $20 trillion commercial real estate market.
As part of its deal, all 84 First Republic branches in eight states – including seven in Santa Clara County, 15 in San Francisco, six in San Mateo County, eight in the East Bay and 17 in Southern California – will reopen this morning as JPMorgan branches.
The April 21 downgrading of the credit ratings of 11 regional banks by Moody’s raised new doubts about their stability, while their leaders said the turmoil spurred by last month’s collapse of Silicon Valley Bank has passed.
The March 27 purchase by First Citizens Bancshares of all assets and liabilities of the failed Silicon Valley Bank did not include a community reinvestment pledge signed by SVB in 2021 as part of an acquisiton of Boston Private Bank.
The Federal Deposit Insurance Corporation, ending its search for a buyer of the failed Silicon Valley Bank, announced late Sunday a government-backed deal in which First Citizens Bancorp will buy the bank's loans and assets.
The picture that is emerging of SVB is one of a bank whose leaders failed to plan for a realistic future and neglected looming financial and operational problems, even as they were raised by Fed supervisors.
The Federal Reserve, Treasury Department and Federal Deposit Insurance Corporation announced in a joint statement Sunday that all Silicon Valley Bank depositors will have access to all of their money starting Monday, March 13, and that none of these costs will be paid by U.S. taxpayers.