The Silicon Valley Bank (SVB) has reportedly been shut down by a California regulator. As per updates, after the closure of SVB, the Federal Deposit Insurance Corporation (FDIC) has been appointed as the receiver.
According to a Reuters report, the announcement of Silicon Valley Bank shutting down was made on Friday after the agency announced in a statement. As of December 31, 2022, the SVB reportedly had about $209 billion in total assets and about $175.4 billion in total deposits.
However, since the bank has now been shut, even the branches will be impacted. The report adds that the main office and all branches of the Silicon Valley Bank will reopen on March 13. Accordingly, “all insured depositors will have full access to their insured deposits no later than Monday morning,” Reuters quoted an official statement as saying.
For those who are not aware about the dynamics of the Silicon Valley Bank case, the SVB Financial Group runs one of the largest American commercial banks, as named. The company reportedly announced a $1.75 billion-worth share sale that did not go well with the Wall Street, leading to a massive sell-off in the group’s shares. As a result, the sell off landed the stock in a place where it fell close to 60 per cent and finished almost $80 billion of its market value, as per media reports.