Banking regulators take over and close Silicon Valley Bank in the biggest US bank failure since the global financial crisis.
abc.net.au/news/regulators-seize-silicon-valley-bank/102083852Banking regulators in California have taken over and closed the troubled tech lender Silicon Valley Bank, in the biggest US bank failure since the global financial crisis.Shares of the bank were halted on Friday, after tumbling 66 per cent in pre-market tradingThe California Department of Financial Protection and Innovation closed the bank on Friday and appointed the Federal Deposit Insurance Corporation as receiver.
The bank's failure came with incredible speed, with some industry analysts on Friday suggesting it was a good company and still likely a wise investment. Silicon Valley Bank executives were looking to raise capital early on Friday or find additional investors.Notably, the FDIC did not wait until the close of business to seize the bank, as is typical in an orderly wind-down of a financial institution.
The FDIC could not immediately find a buyer for the bank's assets, signalling how fast depositors had cashed out.Silicon Valley Bank had about $US209 billion in total assets and about $US175.4 billion in total deposits, as of December 31, 2022.The main office and all branches of Silicon Valley Bank will reopen on March 13 and all insured depositors will have full access to their insured deposits no later than Monday morning, according to the FDIC.
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