• Silicon Valley Bank (SVB) has officially been shut down by the California Department of Financial Protection and Innovation.
• The FDIC has taken over SVB, creating the Deposit Insurance National Bank of Santa Clara to protect depositors.
• SVB had $209 billion in total assets and $175.4 billion in total deposits at the time of its closure.
Silicon Valley Bank Closure
The embattled Silicon Valley Bank (SVB) has officially been closed down by the California Department of Financial Protection and Innovation, making for the second-largest bank failure in U.S. history.
FDIC Takes Over SVB
The Federal Deposit Insurance Corporation (FDIC) has been appointed as its receiver and will ensure all insured depositors gain full access to their funds by Monday, March 13. Per a press release from the FDIC on Friday, the FDIC has simultaneously created the Deposit Insurance National Bank of Santa Clara (DINB) to protect SVB’s depositors, to which all insured deposits from the collapsed bank have been transferred.
Insured Deposits Protected
Under the FDIC, insured deposits include account holdings of under $250,000. Meanwhile, uninsured depositors will be granted a „receivership certificate“ for their remaining uninsured deposits. The FDIC said future dividend payments „may be made to uninsured depositors,“ as the agency sells off SVB’s assets.
Size Of Assets & Deposits
As of December 31, 2022, Silicon Valley Bank had approximately $209 billion in total assets and about $175.4 billion in total deposits,“ stated the FDIC. The agency said that it still needs additional information to determine exactly how much the bank’s total deposits exceed insurance limits
Largest Bank Failure Since 2008
SVB is the largest bank to fail since the Great Recession in 2008, when Washington Mutual Bank fell apart with $307 billion in assets