The Federal Deposit Insurance Corporation (FCIC) has assumed control of Silicon Valley Bank (SVB) to protect depositors from losing all of their money after it was closed by the California Department of Financial Protection and Innovation.
Federal banking regulators on March 10 took custody of the country’s 16th largest bank, which was a top lender for American tech and life sciences firms and start-ups, according to a press release.
The collapse of the California bank is the largest bank failure since Washington Mutual in 2008, during the last major bank crisis.
The FDIC set up a so-called bridge bank, the Deposit Insurance National Bank of Santa Clara (DINB), and as the receiver, transferred all of the insured deposits of SVB there and so all insured assets, up to the $250,000 coverage limit, are safe and will be accessible to depositors starting March 13….