US regulators seize Silicon Valley Bank in largest bank failure since financial crisis
California banking regulators on Friday closed SVB Financial Group, the largest bank failure since the financial crisis, moving quickly to protect depositors as a crisis at the startup-focused lender rippled through global markets and hit banking stocks.
The regulator appointed the Federal Deposit Insurance Corporation (FDIC) as receiver, putting the tech-heavy lender into receivership and will dispose of its assets, according to a statement.
Silicon Valley Bank is the first FDIC-insured institution to fail this year, the FDIC said. The last FDIC-insured institution to close was Almena State Bank, Almena, Kansas, on October 23, 2020.
The main office and all branches of Silicon Valley Bank will reopen on March 13 and all insured depositors will have full access to their insured deposits no later than Monday morning, according to the FDIC statement.
Shares of SVB were halted on Friday after tumbling as much as 66% in premarket trading.
SVB, which does business as Silicon Valley Bank, was not immediately available for comment.
Earlier, SVB said it was undergoing a series of conversations to determine next steps for the company, it wrote in a memo to employees Friday morning seen by Reuters.
"We request all employees work from home today and until further notice, except essential and branch employees. More information will be communicated as soon as it is available."
The source characterized the situation as "chaos." He said they have less than a million left in the bank, for operational costs.
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