California Regulators Seize Silicon Valley Bank Amid Bank Run
Silicon Valley Bank, the nation’s 16th largest bank, has been seized by California regulators on March 10th as depositors rushed to withdraw their money following the bank’s announcement of a significant loss on its bond holdings.
While the bank does not have any branches in Arizona, it has a corporate office in Tempe and serves the tech sector, catering to startup companies and their investors.
The collapse of the bank is the largest failure of a financial institution since Washington Mutual in 2008 during the financial crisis.
The FDIC has ensured insured depositors that they will have access to their money by Monday morning.
The FDIC insures deposits up to $250,000, and it appears that they are honoring everything, including Venture capitalists holding deposits, some of which are larger than the insured limit.
Despite the bank’s collapse, those who conduct ordinary transactions with the financial institution will not lose their deposits as they are insured.
The FDIC has gone above and beyond the insured limit for this particular bank, which is a boutique bank with venture capitalists holding deposits.