Silicon Valley Bank failed after a bank run on its deposits and was taken into receivership by the Federal Deposit Insurance Corporation.
WASHINGTON – 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 receiver. To protect insured depositors, the 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.
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 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.
Silicon Valley Bank had 17 branches in California and Massachusetts. The main office and all branches of Silicon Valley Bank will reopen on Monday, March 13, 2023. The DINB will maintain Silicon Valley Bank’s normal business hours. Banking activities will resume no later than Monday, March 13, including on-line banking and other services. Silicon Valley Bank’s official checks will continue to clear. Under the Federal Deposit Insurance Act, the FDIC may create a DINB to ensure that customers have continued access to their insured funds.
As of December 31, 2022, Silicon Valley Bank had approximately $209.0 billion in total assets and about $175.4 billion in total deposits. At the time of closing, the amount of deposits in excess of the insurance limits was undetermined. The amount of uninsured deposits will be determined once the FDIC obtains additional information from the bank and customers.
Customers with accounts in excess of $250,000 should contact the FDIC toll–free at 1-866-799-0959.
The FDIC as receiver will retain all the assets from Silicon Valley Bank for later disposition. Loan customers should continue to make their payments as usual.
Silicon Valley Bank is the first FDIC–insured institution to fail this year. The last FDIC–insured institution to close was Almena State Bank, Almena, Kansas, on October 23, 2020.
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CNBC’s Hugh Son and Deirdre Bosa join ‘Squawk on the Street’ to discuss their thoughts on SVB Financial and where they see the bank heading (CNBC). YouTube Tips ⓘ
Alison Greenberg, CEO of Ruth Health, describes to CNN’s Erin Burnett what it was like to urgently withdraw money from Silicon Valley Bank before it collapsed (CNN). YouTube Tips ⓘ
The Silicon Valley Bank ($209 billion) collapse is the second-largest US bank failure in history, following Washington Mutual ($434 billion) in 2008. Third place goes to Continental Illinois National Bank and Trust ($117 billion) in 1984.
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. https://t.co/FM4MXx6VZN
— CNBC (@CNBC) March 10, 2023
— Forbes (@Forbes) March 10, 2023
Founders swarmed SVB’s Bay Area branches looking for answers after bank's historic failure https://t.co/tjEk5FxpqX
— CNBC (@CNBC) March 11, 2023
Stablecoin USDC breaks dollar peg after firm reveals it has $3.3 billion in SVB exposure https://t.co/4TINA6FJm0
— CNBC (@CNBC) March 11, 2023
Daily Mail | CEO of Silicon Valley Bank sold $3.57 million of stock in the troubled bank just TWO WEEKS before its dramatic collapse in automated trade planned on January 26 – and CFO ditched $575,000 the same day
The bank’s customers were primarily in the industries of technology, life science/healthcare, private equity/venture capital and premium wine.
Clients listed on SVB’s official website include …
Businesses also affected* by SVB failure according to news media sources (some are affect financially, but not operationally with disruption) …
Ginkgo Bioworks Holdings
Rocket Lab USA
* Some companies listed may not have any negative impact due to minimal exposure the SVB bank failure. Also, some companies may have removed their funds before the bank failure.
Silicon Valley Bank (SVB) was a commercial bank headquartered in Santa Clara, California. SVB was the 16th largest bank in the United States at the time of its failure in March 2023. SVB was the largest bank by deposits in Silicon Valley.
Nasdaq IPO: SIVB
Began US Expansion to 15 states
Opened Israel office
Appointed Greg Becker CEO
Launched UK branch &
Opened joint venture bank in China
Opened Ireland office
Opened Germany office
Acquired healthcare investment bank Leerink Partners
Opened Global Delivery Center in India
Opened Canada office
Opened Denmark office
Acquired WestRiver Group’s Debt Investment Business
Celebrated the 10th annual Tech Gives Back week of community service
Acquired Boston Private, a leading provider of wealth management, trust and banking services
Announced $11.2 billion, five-year Community Benefits Plan
Launched Nasdaq Private Market with Nasdaq, Citi, Goldman Sachs and Morgan Stanley
Launched technology investment banking practice and acquired equity research firm MoffettNathanson
Announced commitment to provide $5 billion in sustainable finance and set goal to achieve carbon neutral operations by 2025
Welcomed Kay Matthews as Chair of SVB Board of Directors
FOX Business’ Neil Cavuto, Susan Li and Kaltbaum Capital Management’s Gary Kaltbaum discuss California regulators closing Silicon Valley Bank and the impact on its customers (FOX Business). YouTube Tips ⓘ
MacroMavens founder Stephanie Pomboy discusses the closing of Silicon Valley Bank and how things are likely to get worse on ‘The Bottom Line’ FOX Business. YouTube Tips ⓘ
‘Breitbart Business Digest’ co-author and economics and finance editor John Carney reacts to the FDIC taking control of Silicon Valley Bank deposits on ‘Kudlow’ FOX Business. YouTube Tips ⓘ
White House reacts to Silicon Valley Bank collapse with White House press secretary Karine Jean-Pierre press conference, Friday, March 10, 2023. YouTube Tips ⓘ