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Silicon Valley Bank Closes After Capital Raise Failure

The Federal Deposit Insurance Corporation (FDIC) has closed Silicon Valley Bank due to deposit outflows and a failed capital raise. The California Department of Financial Protection and Innovation appointed the FDIC as a receiver.

FDIC logo
FDIC logo

FDIC Protects Insured Depositors

The FDIC created the Deposit Insurance National Bank of Santa Clara (DINB) to protect insured depositors. The FDIC immediately transferred all Silicon Valley Bank-insured deposits to the DINB at closing.

Shares of the Parent Company Halted

Shares of the bank's parent company, SVB Financial, remained halted for trade after losing 60% on Thursday and another 60% in pre-market trading on Friday.

Uninsured Depositors to Receive Advance Dividend

All insured depositors will have full access to their insured deposits by Monday morning, March 13, 2023. The FDIC will pay uninsured depositors an advance dividend within the next week. Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds. Future dividend payments may be made to uninsured depositors as the FDIC sells the assets of Silicon Valley Bank.