News

FDIC Intervenes: Silicon Valley Bank Clients Rejoice With Full Access To Funds

Key Points:

  • The FDIC protects depositors of Silicon Valley Bank, Santa Clara, CA.
  • All deposits, both insured and uninsured, and substantially all assets transferred to a newly created FDIC-operated ‘bridge bank’.
  • Silicon Valley Bank, N.A. will resume normal banking activities, including online banking.
The Federal Deposit Insurance Corporation (FDIC) has taken action to protect all depositors of Silicon Valley Bank of Santa Clara, California. All deposits, both insured and uninsured, and substantially all assets have been transferred to a newly created, full-service FDIC-operated ‘bridge bank.’

The new bank, named Silicon Valley Bank, N.A., will open this morning and resume normal banking activities, including online banking. Depositors and borrowers will automatically become customers of Silicon Valley Bank, N.A. and have access to their funds through ATM, debit cards, and check writing. The transfer of all deposits was completed under the systemic risk exception approved on March 12, 2023.

The FDIC named Tim Mayopoulos as CEO of Silicon Valley Bank, N.A. Mr. Mayopoulos is a former president and CEO of the Federal National Mortgage Association and most recently served as president of Blend Labs, Inc. This action will protect depositors and preserve the value of the assets and operations of Silicon Valley Bank, improving recoveries for creditors and the Deposit Insurance Fund (DIF).

The bridge bank structure is designed to “bridge” the gap between the failure of a bank and the time when the FDIC can stabilize the institution and implement an orderly resolution. Shareholders and certain unsecured debt holders will not be protected, and senior management has been removed. Any losses to the DIF to support uninsured depositors will be recovered by a special assessment on banks, as required by law.

The receiver for Silicon Valley Bank has also transferred all Qualified Financial Contracts of the failed bank to the bridge bank. This action will ensure that depositors have full access to their money and protect them from any losses associated with the resolution of Silicon Valley Bank.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Thana

Coincu News

Thana

I am a news editor at Coincu, where I produce daily editorial packages and manage the knowledge and review article sections. Before journalism, I earned a Bachelor's degree in Global Logistics and Supply Chain Management from Northampton University and studied news journalism at Press Association Training.

Recent Posts

Bitcoin Spot ETF Inflows Reach $449M With BlackRock Leading

Key Points: Bitcoin Spot ETF Inflows totaled $449M, led by BlackRock’s $1.45B contribution. Ethereum Spot…

4 minutes ago

Best New Meme Coins to Join for 2025: BTFD Coin Leads, Popcat Keeps It Purr-fect, and Non-Playable Coin Hits Gamers Hard

Discover the Best New Meme Coins to Join for 2025. BTFD Coin's price rollback offers…

1 hour ago

Solana memecoins crash while DTX Exchange hits 100,000 TPS on layer-1 blockchain

Discover how DTX Exchange's historic achievement of 100,000 transactions per second on a layer-1 blockchain…

2 hours ago

Strategic Bitcoin Reserve Expected to Cut 35% of US National Debt by 2049

VanEck suggests the U.S. could reduce its national debt by 35% by 2050 through a…

2 hours ago

The New Lead of Presidential Crypto Council Appointed by Trump Is Bo Hines

President-elect Donald Trump named Bo Hines as the executive director of the presidential crypto council.

3 hours ago

Best New Meme Coins with 1000X Potential: BTFD Coin’s Hot BIG50 Discount As Baby Doge Coin, Dogs Takes Gaming to the Next Level

Explore the best new meme coins with 1000X potential. Learn how BTFD Coin leads with…

4 hours ago

This website uses cookies.