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Around the same time, Switzerland’s largest bank, UBS, agreed to buy its beleaguered smaller rival Credit Suisse for about $3.2 billion in a deal hastily orchestrated by the Swiss government. When the collapse of Silicon Valley Bank shook the markets, investors quickly lost faith in Credit Suisse, which had been plagued by scandals and mismanagement for years.
Banking regulators around the world quickly gained confidence in the system. The Federal Reserve, the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank and the Swiss National Bank have said they will work to make US dollar funding more accessible. The Fed also created an emergency lending program to provide additional support to banks.
US regulators have said that all Silicon Valley Bank and Signature Bank depositors will receive full payouts, and since then some lawmakers have been pushing to raise or even eliminate the deposit insurance limit, which is currently set at $250,000. The rapid loss of deposits at mid-sized banks has prompted some, such as First Republic and PacWest, to draw on lines of credit and look for other deals to bolster their balance sheets.
Shares of mid-sized lenders, which suffered after the collapse of Silicon Valley Bank, jumped in premarket trading on Monday. The First Citizens scored about 40 percent, while the First Republic grew by 20 percent.
First Citizens is headquartered in Raleigh, North Carolina and has over 500 branches in 22 states. The bank was founded in 1898 and positions itself as the largest family bank in the United States. Members of the same family ruled it for three generations.
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