The Federal Deposit Insurance Corporation (FDIC) has moved swiftly to safeguard the deposits of all customers affected by the sudden collapse of Silicon Valley Bank in Santa Clara, California.
Under a systemic risk exception approved yesterday, the FDIC transferred all deposits—both insured and uninsured—and substantially all assets of Silicon Valley Bank to a new ‘bridge bank’, Silicon Valley Bridge Bank, N.A. This action was taken to ensure that depositors have full access to their funds.
Silicon Valley Bridge Bank, N.A., opened for business this morning, resuming normal banking hours and activities. Depositors and borrowers will automatically become customers of the new bank, enjoying uninterrupted service through ATMs, debit cards, and check writing. Loan customers are advised to continue making regular loan payments.
Silicon Valley Bank was closed by the California Department of Financial Protection and Innovation on Friday, March 10th, with the FDIC appointed as receiver. Shareholders and certain unsecured debt holders will not be protected, but all depositors will be made whole, with no losses borne by taxpayers.
The bridge bank structure is designed to ‘bridge’ the gap between a bank’s failure and the time when the FDIC can stabilize the institution and implement an orderly resolution. Tim Mayopoulos, former president and CEO of the Federal National Mortgage Association, has been named CEO of Silicon Valley Bridge Bank, N.A.
For more information on the failed bank and frequently asked questions, please refer to the additional resources provided by the FDIC.
RELATED: FDIC Launches Damage Control After Bank Failures
Related Federal Cases
- FDIC Establishes DINB for Silicon Valley Bank Depositors · Massachusetts
- SVB & Signature Bank Collapse: Taxpayers Spared, Depositors Made Whole · New York
- First National Bank of Lindsay Shut Down, Insured Deposits Acquired by First Bank & Trust · Washington
- FDIC ComE-IN Panel to Discuss CRA Modernization, Equity Issues · Washington
- Guerilla Black Sentenced to Decade for Bank Fraud · Washington
Key Facts
- Agency: FDIC
- Category: Fraud & Financial Crimes|Public Corruption
- Source: Official Source ↗
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