on Friday, the Federal Deposit Insurance Corp. announced that financial regulators had closed Silicon Valley Bank (SVB) and seized its deposits, in the largest US bank failure since the 2008 financial crisis.
SVB had been a key player in the tech and venture capital community, and its failure leaves its wealthy depositors in a state of uncertainty about what will happen with their deposits. Reports indicate that over 85% of the deposits in the bank will not qualify for FDIC insurance due to being over the insurable limit.
Press releases from regulators indicate that the California Department of Financial Protection and Innovation closed SVB and named the FDIC as the receiver. The FDCI delivered the insured deposits from SVB to the newly created Deposit Insurance Bank of Santa Clara,
The FDIC announced that insured depositors will be able to access their deposits no later than Monday morning. The branch offices of SVB will also open then, under the regulator’s control.
SVB’s official checks will continue to clear, according to the announcement.
