FDIC Regulators Shut down Silicon Valley Bank, The giant fintech leading bank ins the Us On Friday.

Federal Deposit Insurance Corp. announced that financial regulators have shut down Silicon Valley Bank, and have since taken control of its deposits. 

According to CNBC, Silicon Valley Bank (SVB) is a leading force within the tech and venture capital industries, leaving many companies and wealthy depositors connected to the bank curious about what will happen to their finances. In a press release, it states that the California Department of Financial Protection and Innovation closed the bank, making the FDIC the receiver. 

In response, the FDIC has created the Deposit Insurance National Bank of Santa Clara. They shared that SVB’s insured depositors will have access to their finances no later than Monday morning, and SBV’s offices will open back up around that time as well. Also, official checks under SVB will continue to clear.

The FDIC’s standard insurance only covers up to $250,000 per depositor. Therefore, leaving uninsured depositors to get receivership certificates for their balances, as well as an advanced dividend within the next week. 

The last major U.S. bank failure took place back in 2008 with Washington Mutual, which had about $307 billion in assets.

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