Breathing in the European stock markets after a black Friday in which the banking sector returned to reactivate all the alarms around the outbreak of a global financial crisis. After three consecutive days of falls, the Ibex-35 opens the week with a rise of more than 1% to 8,900 points.
Behind the best tone in the market is, without a doubt, the decision by First Citizens Bank to buy all the deposits and loans of Silicon Valley Bank (SVB), the Californian entity that triggered the crisis.
The Federal Deposit Insurance Corporation (FDIC) had been forced to extend the deadline for other entities to present their offers for the failed bank, but until now no one had responded due to the fear of assuming greater balance sheet charges. Ultimately, the North Carolina-based entity will take over most of the assets valued at about $72 billion, according to Reuters.
All SVB branches will thus open this Monday as offices of First Citizens Bank, so customers will have to continue using them. Similarly, the FDIC has confirmed that it will continue to guarantee all deposits “up to the insurance limit.” The organization calculates that the cost of the bank’s bankruptcy will be around 20,000 million dollars for the deposit guarantee fund.