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Silicon Valley Bank (SVB), used largely by technology workers and venture capital-backed startup companies in the U.S. was closed on Friday by California’s banking regulators due to ‘inadequate liquidity and insolvency.’
Shares of the bank were halted Friday after tumbling 66 percent, driven by fears of a bank run, as wealthy depositors rushed to pull their cash from the 16th largest bank in the U.S.SVB’s parent group announced Wednesday it had started selling its $21 billion in bonds.
The Federal Deposit Insurance Corporation (FDIC) was appointed as the collapsed bank’s receiver on Friday, as all its branches were closed across multiple states.
SVB branches will reopen on Monday, March 13 and all insured depositors will have full access to their insured deposits no later than Monday morning, the FDIC said.
Uninsured SVB depositors will receive an advanced dividend next week and a receivership certificate for the remaining amount of their uninsured funds, according to an FDIC statement.
The FDIC will sell the assets of Silicon Valley Bank, and says “future dividend payments may be made to uninsured depositors” at that time.Standard FDIC insurance protects up to $250,000 per depositor, per bank, for each category of account ownership.
SVB customers with accounts in excess of $250,000 are urged to contact the FDIC. Silicon Valley Bank is the first FDIC insured institution to fail in the U.S. in 2023.
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Copyright © 2023 CGTN. 京ICP备16065310号
Disinformation report hotline: 010-85061466