Canada’s banking regulator has taken permanent control of the assets held by Silicon Valley Bank (SVB)’s branch in Toronto, with the assets being transferred to a new “bridge bank” created by the U.S. Federal Deposit Insurance Corporation (FDIC).
“I took this action to affect an orderly transition of the Canadian branch of Silicon Valley Bank to the FDIC bridge bank,” said Superintendent of Financial Institutions Peter Routledge in a release on March 15. “I am satisfied that this approach, developed with officials in the United States, is in the best interest of the branch’s creditors.”
SVB, which served nearly half of the United States’ venture-capital-backed technology and life-science companies, collapsed over the weekend. Panicked investors had attempted to withdraw billions over concerns about the bank’s finances. When the bank failed to raise enough money to meet its obligations, the California Department of Financial Protection and Innovation closed it down….