Silicon Valley Bank is shut down by regulators, FDIC to protect insured deposits

Silicon Valley Bank has been closed by regulators, which person taken power of the bank's deposits, the Federal Deposit Insurance Corp. announced Friday.

The California Department of Financial extortion and Innovation closed SVB, and named the FDIC arsenic the receiver. The FDIC successful crook has created the Deposit Insurance National Bank of Santa Clara, which present holds the insured deposits from SVB.

The FDIC said successful the announcement that insured depositors volition person entree to their deposits nary aboriginal than Monday morning. SVB's subdivision offices volition besides reopen astatine that time, nether the power of the regulator.

The FDIC's standard insurance covers up to $250,000 per depositor, per bank. It is unclear precisely however larger accounts oregon recognition lines for companies volition beryllium impacted by the closure. The FDIC said it volition wage uninsured depositors an precocious dividend wrong the adjacent week.

The determination represents a accelerated a downfall for SVB. On Wednesday, the slope announced that it was looking to rise much than $2 cardinal successful further superior aft suffering a $1.8 cardinal nonaccomplishment connected plus sales.

The shares of genitor institution SVB Financial Group fell 60% connected Thursday, and dropped different 60% successful premarket trading connected Friday earlier being halted.

CNBC's David Faber reported that the efforts to rise superior had failed and that SVB had pivoted toward a imaginable sale. However, a accelerated outflow of deposits was complicating the income process.

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