Silicon Valley Bank is shut down by regulators in biggest bank failure since global financial crisis
Silicon Valley Bank is shut down by regulators in biggest bank failure since global financial crisis
PUBLISHED FRI, MAR 10 202311:46 AM ESTUPDATED 35 MIN AGO
SHAREShare Article via FacebookShare Article via TwitterShare Article via LinkedInShare Article via Email
KEY POINTS
- The FDIC said in the announcement that insured depositors will have access to their deposits no later than Monday morning.
- SVB’s branch offices will also reopen at that time, under the control of the regulator.
- The FDIC’s standard insurance covers up to $250,000 per depositor, per bank, for each account ownership category.
WATCH NOW
VIDEO02:42
Silicon Valley Bank meltdown: Here’s how it happened in real-time
Financial regulators have closed Silicon Valley Bank and taken control of its deposits, the Federal Deposit Insurance Corp. announced Friday, in what is the largest U.S. bank failure since the global financial crisis more than a decade ago.
The collapse of SVB, a key player in the tech and venture capital community, leaves companies and wealthy individuals largely unsure of what will happen to their money.
According to press releases from regulators, the California Department of Financial Protection and Innovation closed SVB and named the FDIC as the receiver. The FDIC in turn has created the Deposit Insurance National Bank of Santa Clara, which now holds the insured deposits from SVB.
WATCH NOW
VIDEO03:42
FDIC plans to pay SVB depositors after bank fails
The FDIC said in the announcement that insured depositors will have access to their deposits no later than Monday morning. SVB’s branch offices will also reopen at that time, under the control of the regulator.
According to the press release, SVB’s official checks will continue to clear.
