Silicon Valley Bank closed by California Department of Financial Protection and Innovation and appointed judicial administrator the Federal Deposit Insurance Corporation (FDIC).
SVB Financial Group share prices plunged during the week. On Wednesday, the bank surprised by announcing that it needed to raise $2.25 billion in shares, sparking concern.
The situation around Silicon Valley Bank weighed on the banking sector and general market sentiment. This is the largest bank failure since the financial crisis of 2008/2009.
More information from the FDIC:
“To protect insured depositors, the FDIC created the Santa Clara National Deposit Insurance Bank (DINB). At the time of closing, the FDIC as recipient immediately transferred all Silicon Valley Bank insured deposits to DINB.”
“All insured depositors will have full access to their insured deposits no later than Monday morning, March 13, 2023. The FDIC will pay uninsured depositors an anticipated dividend within the next week. Uninsured depositors will receive a certificate receivership for the remaining amount of its uninsured funds. As the FDIC sells Silicon Valley Bank’s assets, future dividend payments may be made to uninsured depositors.”
“Silicon Valley Bank had 17 branches in California and Massachusetts. Silicon Valley Bank’s main office and all branches will reopen on Monday, March 13, 2023.”
“As of December 31, 2022, Silicon Valley Bank had approximately $209.0 billion in total assets and approximately $175.4 billion in total deposits. At the time of closing, the amount of deposits in excess of insurance limits was indeterminate.”
“Silicon Valley Bank is the first FDIC-insured institution to fail this year.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
