FDIC Takes Over Silicon Valley Bank: Here Are The Details

Silicon Valley Bank has been closed Friday by the California Department of Financial Protection and Innovation, and the Federal Deposit Insurance Corporation has been appointed as the bank's receiver. 

What Happened: The news comes on the heels of SVB's parent company, SVB Financial Group SIVB, failing to raise enough cash to sustain operations.

SVB is a major bank for venture-backed companies, and it cited cash burn from clients as one reason it was looking to raise additional capital. The bank's troubles underscore the difficulty companies face as of late due to escalating interest rates and a looming recession.

Here's what we know from the FDIC:

• All insured depositors will have full access to their insured deposits no later than Monday morning, March 13.
• The FDIC will pay uninsured depositors an advance dividend within the next week. Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds.
• As the FDIC sells SVB assets, future dividend payments may be made to uninsured depositors.
• SVB's main office and all branches will reopen on Monday, but banking activities will resume no later than March 13 (that includes online banking). SVB’s official checks will continue to clear.

As of Dec. 31, SVB had about $209 billion in total assets and some $175 billion in total deposits. At the time of closing, the amount of deposits in excess of the insurance limits was undetermined.

The company has just 17 branches in two states: California and Massachusetts. Yet it's the second-biggest bank failure ever, behind Washington Mutual. Its problems led to a dip in market value for several major banks, including JPMorgan Chase JPM.

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