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https://www.wsj.com/articles/svb-customers-who-lost-their-deposits-remain-on-the-hook-for-loans-5df7963b

SVB Customers Who Lost Their Deposits Remain on the Hook for Loans

The FDIC seized the deposits of Silicon Valley Bank’s Asian customers, but their loans remain with First Citizens Bank

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The Federal Deposit Insurance Corporation is doing what it was designed to do when banks like Silicon Valley and Signature Banks go under: cover insured deposits. Here’s how the FDIC works and why it was created. Photo illustration: Madeline Marshall

Silicon Valley Bank’s customers in Asia whose deposits were recently seized by the Federal Deposit Insurance Corp. are in a bind for another reason: they still have loans outstanding—to First Citizens Bank FCNCA 0.69%increase; green up pointing triangle.

When SVB failed earlier this year, the FDIC stepped in to protect all of the California bank’s U.S. deposits and arranged a sale of the lender’s U.S. customer accounts, branches and loans to First Citizens Bancshares.

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