SVB Fails as FDIC Takes Over and Appoints a Receiver

Bloomberg News: Silicon Valley Bank was closed Friday by the California Department of Financial Protection and Innovation, with the Federal Deposit Insurance Corp. as receiver, the FDIC said in a statement. All insured depositors will have full access to their insured deposits no later than Monday morning, the FDIC said. Uninsured depositors will get a receivership certificate for the remaining amount of their uninsured funds, the FDIC said. As the agency sells off Silicon Valley Bank's assets, future dividend payments may be made to uninsured depositors, according to the statement. Until now, there had only been a dozen US bank failures since 2017. Those failures were usually due to weaknesses in credit quality with losses overwhelming balance sheets, Bloomberg Intelligence's Herman Chan told me last week. Silicon Valley Bank had 17 branches in California and Massachusetts. The company's main office and all Silicon Valley Bank branches will reopen on Monday, the FDIC said.

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