FDIC Protects Insured Depositors
The FDIC created the Deposit Insurance National Bank of Santa Clara to protect insured depositors. All insured deposits at Silicon Valley Bank, popular with start-ups and venture capitalists, were immediately transferred to DINB. According to an FDIC announcement, insure depositors will have access to their insured deposits by March 13.
Silicon Valley Bank Becomes First Failure of 2023
Silicon Valley Bank became the first FDIC-insured institution to fail this year, the previous being Almena State Bank, of Almena, Kansas, in 2020.
Trading in Silicon Valley Bank Halted
Trading in Silicon Valley Bank was halted shortly before 9 a.m. EST, but not before shares plunged 63% in pre-market trading. Shares dropped 60% on Thursday.
La Jolla Bank Announces Wind-Down Operations
The closure of Silicon Valley Bank comes two days after La Jolla, California-based crypto-friendly bank Silvergate announced plans to wind down operations.
