Silicon Valley Bank, Santa Clara, California, was closed today by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as a receiver.
The bank collapsed dramatically in 48 hours after venture capital firms withdrew their money on fears the bank had balance sheet issues.
FDIC created the Deposit Insurance National Bank of Santa Clara (DINB). At the time of closing, the FDIC as receiver immediately transferred to the DINB all insured deposits of Silicon Valley Bank. the FDIC said that all insured depositors will have full access to their insured deposits by Monday, March 13 the latest. Uninsured depositors meanwhile will get an advance dividend within the next week. Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds. As the FDIC sells the assets of Silicon Valley Bank, future dividend payments may be made to uninsured depositors.
