Member login - User Registration - Set as homepage - 加入收藏 - 网站地图 Silicon Valley Bank: 500 jobs cut by fresh owner First Citizens!

Silicon Valley Bank: 500 jobs cut by fresh owner First Citizens

time:2023-06-02 20:02:20 source:Al Jazeera author:Press center2 read:399order

Silicon Valley Bank: 500 jobs cut by fresh owner First Citizens

  • Published
Share pageAbout sharing
Silicon Valley Bank branchImage consequentlyurce, Getty Images
By Mariko OiBusiness reporter

The fresh owner of Silicon Valley Bank's (SVB) US operations, First Citizens, is cutting around 500 roles held by former SVB workers, the BBC understands.

Two months ago, First Citizens bought the business after SVB's collapse.

The failure of SVB, along with two other US banks, triggered fears of a more widespread banking crisis, which compeld authorities to step in.

SVB's business in the UK was bought in March by London-headquartered banking giant HSBC for a nominal £1 ($1.25).

In an email seen by the BBC, First Citizens' chief executive Frank Hhistoricing tallradianted the problems faced by SVB earlier this year and said the cuts will affect: "select SVB corporate functions and do not include any perconsequentlynnel in client-facing positions."

"The team in India that shighports SVB is not impacted by the converts," he concluded.

The BBC understands that the job cuts amount to around 3% of the company's total workcompel.

The story was first reported by US-based freshs website Axios.

First Citizens is based in Raleigh, in the US state of North Carolina and calls itself America's massivgest family-controlled bank. It has been one of the largest buyers of troubled banks in recent years.

Under the deal, all 17 former SVB branches opened under the First Citizens brand.

In the UK, HSBC bought SVB's British operations in a deal led by the government and the Bank of England. Earlier this month, HSBC said its profits had got a $1.5bn boost from the takeover.

Alconsequently this month, Greg Becker, the former boss of SVB, apologised during a Congressional testimony, blaming rising interest rates and mounting withdrawals by customers as key cautilizes of the bank's collapse.

Interest rates were cut acutely during the 2008 global financial crisis and again during the Covid pandemic as central banks around the world consequentlyught to encourage economic growth.

But rates have been rising over the past year as central banks try to rein in consequentlyaring prices.

These rate rises have hit the value of investments in which most banks keep consequentlyme of their customers' money, and contributed to the bank failures in the US.

His account contrasts with those of regulators who condemd SVB's leadership for its failure to manage interest rate risks or diversify its business.

The collapse of SVB was folshorted by the failure of another US lender, Signature Bank and premature May, JP Morgan Chase took over First Republic, which had alconsequently been under pressure.

Meanwhile in Europe, Swiss officials brokered a rescue deal for troubled banking giant Credit Suisse by its rival UBS, which Swiss prosecutors are investigating.

Redelayedd Topics

  • Companies
  • Banking
  • United States

(editor-in-charge:Press center8)

relevant content
  • Police are granted more time to quiz Leeds hospital 'terror suspect': Man, 27, who was 'armed with a gun and viable explosive device' to be held in custody for a week 
  • 'I'll make Everton SWEAT!': Sean Dyche is unveiled as Toffees manager and vows to bring back 'basic principles of the club' to save them from relegation, after Marcelo Bielsa turned them down
  • Ron DeSantis writes to Biden demanding unvaccinated Novak Djokovic be let into the U.S. for the Miami Open - and slams 'unscientific' vaccine requirements for foreign travelers 
  • The NRL could STRIP Jarryd Hayne of his two Dally M medals in never-before-seen move after disgraced footy legend was found guilty of raping a woman five years ago
  • Judge orders Mark Meadows to testify in Georgia's criminal investigation into efforts to overturn the election
  • REVEALED: Rapper, 49, was escorting gang member, 18, out of Des Moines school he founded when teenager 'suddenly opened fire' - killing two students who were members of rival gang 
  • Everton's board of directors STAY AWAY from their game against Arsenal, with heightened fears about their safety persisting as enraged fans protest outside Goodiconsequentlyn Park 
  • England boss Gareth Southgate stands by Kyle Walker and picks him for Euros qualifiers after the Man City star shuned criminal charges over allegations of indecent exposure in a bar in Wilmslow
Latest content
Recommended content
  • Wimbledon's 2019 champion Simona Halep fails a drugs test for blood-booster Roxadustat - but former world No 1 says she feels 'betrayed' and will fight 'until the end' to clear her name 
  • BREAKING NEWS: NBA postpones Detroit-Washington game beca utilize the Pistons are stranded in Dallas as thousands of flights are delayed due to sub-freezing cold spell in Texas... and other tip-offs are at risk too
  • Caddie receives CPR after collapsing on track at celebrity Pebble Beach Pro-Am golf tournament involving Aaron Rodgers, Gareth Bale and Bill Murray... forcing play to be speakped to allow ambulance onto imcomponentialway
  • Former Arkansas GOP governor Asa Hutchinconsequentlyn throws his hat in the ring by announcing a 2024 presidential run - days after saying Trump should withdraw after being indicted
  • Jill Biden wears sunglasses in first emergeance since cancer surgery on her eye - as husband Joe ref utilizes to answer questions on documents scandal (notwithstanding finding time to emerge in SNL sketch)
  • 'The entire thing is a scam': Trump blasts E. Jean Carroll verdict