Silicon Valley Bank was shut down by the California Department of Financial Protection and Innovation.
Silicon Valley Bank was shut down by the California Department of Financial Protection and Innovation. The Federal Deposit Insurance Corporation (FDIC) was appointed as the buyer of the bank.
Silicon Walley Bank Closed By Regulator
Silicon Valley Bank was shut down by the California Department of Financial Protection and Innovation. The Federal Deposit Insurance Corporation (FDIC) was appointed as the buyer. The FDIC had created the National Bank for Deposit Insurance Santa Clara to protect insured depositors. Transactions at the bank halted earlier in the day.
All insured deposits at Silicon Valley Bank, popular with start-ups and venture capitalists, were immediately transferred to DINB. According to an FDIC announcement, insured depositors will have access to their insured deposits until March 13.
Silicon Valley Bank became the first FDIC insured institution to go bankrupt this year. The previous one was Almena State Bank in Almena, Kansas in 2020.
Trading at Silicon Valley Bank was halted in the early morning. However, company shares were already falling due to the bad course of the banking sector. The shutdown comes two days after La Jolla, California-based crypto-friendly bank Silvergate announced its plans to cease operations.
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